AXA's third generation master trust
AXA has launched what it calls a third generation superannuation master trust to replace its existing Goldline product.
Thursday, May 11th 2000, 12:00AM
AXA's manager of Personal Funds, Mark Pickering, says that Goldline is becoming uncompetitive and has "selected itself out of the market."
"Asset managers are looking for a really extensive manager choice."
He says that is the key difference between second and third generation products. In a second-generation product, such as Goldline, there is a degree of manager diversification, but that is typically selected by the supplier.
Picking says that in the third generation master fund the member has absolute control over manager selection.
The other key feature of the new master fund is that it can be used in all three market segments. On the business side it can be used by employers who want the traditional employer-sponsored scheme approach, but it can also be used by employers who want to offer their staff a scheme, but don't want to running it.
In this area AXA goes up against master trusts from AMP, Tower Employee Benefits, Mercer Retirement Trust and WestpacTrust.
Pickering says the fund will later be offered to the personal or retail market and there could be a version that includes unit trusts as well as super funds.
He says this may become the first real superannuation product financial planners promote.
Generally, advisers have been reluctant to use super funds as they tend to generate only regular saving business, and therefore the commissions are generally low.
Pickering says the new master fund is designed to attract lump sump business and transfers from other schemes. Also it will be an effective product for high income earners who now face higher personal tax rates.
Because of its flexibility the master fund offers its members total portability.
Pickering says the fund will help AXA rationalise its cost structure as it will only need to run one set of funds to service all these markets.
For More details see this month's Special Report
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