Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Superhero joins superannuation arms race
Share trading app, Superhero, this week launched its new “technology-enabled” super fund for Aussies wanting control over their super fund’s investments without needed to register as a self-managed super fund (SMSF).
After conducting research on the matter, Superhero found that “80% of people would like to have a say in how their super is invested, and more than 50% of people under 45 regularly check in on their superannuation.”
The app’s co-founder and CEO John Winters said, “a lack of transparency and investment choice has left younger Australians feeling disengaged with their super despite being very engaged in other areas of their finances, with more young Aussies than ever investing in shares with their savings.”
Instead of blindly locking away 10% of a member’s salary as superannuation, Superhero wants to give its members the opportunity to invest directly in ASX-listed shares, exchange-traded funds (ETFs) and listed investment companies (LICs), with the the ability to invest according to their values and beliefs minus the red tape and high costs. Supehero’s platform allows members to invest directly in any of the top 300 ASX-listed shares, over 150 ETFs or in a suite of managed index, sector and themed funds.
Winters is confident that Superhero’s move into super will change the playing field, saying: “Make no mistake: we are here to disrupt the status quo. We want to change the way people think about it.”
Superhero already offers a trading account with a flat $5 brokerage fee for ASX stocks, $0 brokerage on ASX-listed exchange traded funds (ETFs) and US stocks along with the ability to buy fractional shares (portions of full shares).
The Superhero Super account will sit alongside the standard Superhero trading account allowing two different ways of investing.
- The first option is Autopilot – 70% of a customer’s super balance will be invested in an index ETF and the customer can invest up to 30% in a variety of themed ETFs.
- The second option is Control – 25% of the customer’s balance invested in their index ETF and allows the customer to invest up to 75% of their balance in direct ASX300 shares and ETFs.
A word of caution is always relevant. While having full control of your super fund may sound like a great idea in the short-term, investing for retirement requires patience and oversight. Long-term success in super is about compounding returns over long periods, not trying to get rich quick. So it’s important to balance the urge for immediate action with the importance of compounding returns.
