Britannia launches new scheme

Pension transfer provider Britannia has launched a new scheme, with lower fees and exposure to New Zealand assets.

Wednesday, February 8th 2017, 6:00AM

by Susan Edmunds

The Britannia Superannuation Scheme received ROPS approval last week. Britannia's two existing schemes will be closed to new members.

Britannia chief executive Gavin Dixon said the new scheme would follow the existing model of "smart beta" funds.

The older Britannia schemes had the bulk of their funds managed by IOOF, with a passive approach plus strategic tilting. The older schemes had investments in Australian and global assets. Britannia Superannuation Scheme has half of the Australian exposure invested in New Zealand equities and bonds.

Britannia has brought in Harbour Asset Management, which Dixon said employed a similar method to the approach of the existing funds. He said the New Zealand exposure should help to offset the volatility that could occur between the Australian and New Zealand dollar.

The new scheme is licensed under the Financial Markets Conduct Act, which requires quarterly reporting to investors. Having the New Zealand investment exposure would help when it came to comparisons of the scheme to others in the market in those reports.

Dixon said Britannia was conscious of statements that had been made by MBIE, ratings houses and other market observers about the impact of fees on investors' final outcomes. "That's another of the areas we have taken on board. Our fees are market-leading and competitive going forward."

Annual fees range from 1.3% of the fund's net asset value for the cash fund through to 1.55% for the growth fund. There are also fees involved in the transfer, including a contribution fee, financial adviser fees and a statement of advice fee, where applicable.

Britannia has handled about 20,000 pension transfers in its 20 years in operation.

Tags: pension transfers QROPS