ING Super to allow 100% allocation into LICs/ETFs

I sent a FB message to Australian Super and asked them to bring their product in line with the large selections available within ING. It has been passed onto their product team. Not sure if I will get a direct response. I will follow up in a couple of weeks.

 

I don't disagree with you. eSuperfund owns nothing, your super fund owns everything, so I can't see why you can't switch administrators without selling. I based my comments on an email from eSuperfund from when I rolled my funds from eSuperfund to ING Direct Living Super.

Here is a direct copy and paste from an email from 2015:

Dear Trustees,


We advise that the steps involved to wind up Self-Managed Superannuation Fund in 2015 are as follows:


Step 1: All assets must be converted to cash and deposited into your Fund's ANZ V2 account.​

By wind up, he means roll over to ING Living Super. Regardless of the above, I don't see why someone couldn't work with eSuperfund to transfer assets of the fund without converting to cash. During the time I was with them I found them easy to work with so there is a possibility that transfer of assets could be done? Not sure.

It will be interesting to see what the response is from eSuperfund.

UPDATE:

Thanks @austing, that is indeed good news and very useful information. Where I went wrong was that mine was a transfer from SMSF to ING Living Super, which is not a SMSF. ING Living Super probably only accepts cash, which would explain the confusion.

 

Yes, that makes sense. ING Super is a Pooled unit trust hence it can only accept cash. So eSuperfund has no choice in the matter as they're just doing what you have requested and abiding by the rules of the new Super fund you have chosen.

 

All,

I've been investigating Superannuation | Profit for members super fund | Sunsuper, which seems to be cheap for those wanting only index ETF funds.

Investment fees for relevant funds (note also payable in SMSF):
Australian shares index 0.08% (my guess VAS)
International shares index 0.09% (my guess VGS)
Australian Property index 0.11% (my guess VAP)

Fees

• Total = $75 ($1.50 / week) + 0.1% (up to $800K; 0% over $800K) + investment fee
• No switching fees.
• No fees moving into pension phase.
• Investment fees

https://www.sunsuper.com.au/library...hash=5E5E4D8915C70963117021F9ED6D23A49EEF9952

References
http://forums.whirlpool.net.au/archive/2332770
http://forums.whirlpool.net.au/archive/2603045
Sunsuper hires Vanguard's 'Mr Index' Gus Sauter

 

Thanks @austing !

One of the reasons I decided to go with eSuperfund was their fixed fee structure. Which means I get maximum flexibility in which individual shares / ETF / LIC I can buy and the amount I buy. The fees keep reducing as the size of my super balance increases. So $799 annual compliance fees on balance of say $500K is 0.16% and on say $1 million is only to 0.08%.

Every other SMSF administrator charges a percentage of the super balance. Which means the fees in dollar value increases as your super balance increases.

Because my SMSF only has ETFs and LICs in it the end of FY compliance hardly takes 10-15min. I login to the online portal and attach my dividend and tax statements and answer a few yes/no questions and I am done. I can highly recommend eSuperfund for someone looking for maximum flexibility and costs that goes down as super balance increases.

The free setup and free first year compliance fees is the icing on the cake.

Cheers,
Oracle.

 

I can confirm the annual compliance paperwork is very easy to follow.

 

I'm confused. esuper is NOT a super fund. It is an administration service for SMSFs. Hence the investments arent sold. They remain in the fund. Nor is there a "new SMSF". Thats just wrong.

Moving away from esuper involves detaching from their control. The whole fund is portable from esuper. Their comments could easily be incorrect and comprise false and misleading statements - Why would a knowledgeable adviser give that incorrect view - Is this a client retention strategy intended to confuse people into staying ? And incorrect financial and tax advice that a client could seek redress if CGT etc is triggered because they sell up thinking they need a new smsf to depart esuper.

A SMSF is portable. Commsec is portable too and generally can be moved between broker/adviser sponsored and a HIN which is holder specific. I cant think of a single asset that is forced to be changed to change administration.

To move from SMSF to another fund (ie Sunsuper) an enquiry should be made with the new fund. They may accept inspecie rollovers using a standard transfer form. Or may not. Otherwise all assets must be cashed if they do not allow inspecie rollover. State duty in NSW no longer applies. Some receiving funds may value the arriving shares at a different cost to the departing fund so take care (very complex technical reason)

 

Yes, we'd expect you to be confused as we're using non-accounting speak here.

Thanks for clarifying and expanding on the issue. Much appreciated.

I was initially confused as well as my understanding has always been that a SMSF and it's assets are portable across administrators. Albeit some administrators may require the use of specific brokers and cash account etc. But the confusion was merely due to a misunderstanding by one of the PC forum members here. ESuperfund we're doing nothing wrong it would seem. I think those here know now what is being said even if the conversation is a bit jumbled.

UPDATE:
BUT in most cases a no go for those with an existing SMSF unfortunately:

 

Yes @Paul@PFI, this is what I was talking about. Moving funds from a SMSF to a fund that only accepts cash contributions.

 

Here is response from eSuperfund.

"To the extent that you wish to change your SMSF administrator/accountant, you do not need to sell your investments and you are allowed to transfer your SMSF portfolio to the new SMSF administrator.

To the extent that you wish to windup your SMSF, all assets must be converted to cash and deposited into your Fund's CBA Accelerator account for us to prepare the closure of the SMSF."

That confirms what has already been discussed earlier from @austing phone conversation with them.

Cheers,
Oracle.

 

Makes sense. Thanks @oracle.

 

Funnily enough, this has reduced my fees. Mainly because I've less in balance with ING.... however I can see it being affected once my balance jacks up....most of the businesses lures the new customers in and increase their fees hoping not many will move due to that.....good thing is I can liquidate my ING balance (if that's what is required) and open with Aust Super for my fyure partial rollovers....however there is no guarantee that Aust. super will not increase their fees either.

 

Industry fund vs retail makes it likely Australia super will remain low by comparison

 

I agree but low (by how much) is the question...

 

That's what I would have thought and it's where my super is staying.