Member Direct Investment Services: The best of all worlds

Super fund members are now regularly looking for the opportunity to choose exactly which assets to invest in within their super funds. The growing trend towards self-managed funds is clear evidence of this preference, with SMSFs being the fastest growing sector in the Australian super system. But SMSFs are not necessarily a suitable alternative for all members. The fees for SMSFs are often flat, non-investment linked, (ranging from $2,000 up to $7,500 per fund) and this means that the cost in terms of administration and accounting can make them uneconomic for many investors. The time required to manage the investments and administer the fund can also be onerous.

Nevertheless, a greater degree of control over which assets are held in super is appealing for many investors, and the evidence shows that this appeal is growing across a range of segments, not just the traditional segment of older, wealthier investors.

In response to this trend Bravura Solutions (Bravura) has recently introduced member direct investment capability for its superannuation administration systems, Calibre and SuperB, together with the native functionality within Sonata.

By enabling fund members to direct shares and term deposits within their current super funds, Bravura is enabling super fund trustees to offer the best of all worlds: control and choice of assets, cost effective tax and administration services, while maintaining the ability to access the fund management and asset allocation expertise of the fund’s investment managers.

Member direct integration allows users to meet the growing need for broader asset coverage within the superannuation environment. It enables fund members to hold direct assets within their super funds, connect with any third party broker to execute trades, and provides full tax and account administration of those assets. The services also integrate directly with Bravura’s online superannuation portal, ePASS, as well as with third party portals.

By offering members the ability to include self-directed investments within their super funds, fund operators are able to meet the changing  needs of a growing number of investors for more control of their investments, to deliver higher levels of member satisfaction. Given that superannuation is often regarded with a level of suspicion by members, increasing member satisfaction is an important priority for most super fund operators.

About Sonata

Built from the ground up to help improve client engagement, Sonata delivers a new benchmark in capability from product construction to operational management and technical integration. Sonata features integrated web interfaces and workflow tools ensuring complete control and the rapid launch of new products.

Sonata delivers native member direct functionality, providing the next generation of member engagement solutions.

To learn more about our Sonata product offering, click here.

About the author

Jason Tong

Jason Tong

Chief Operating Officer, APAC

Jason Tong is the Chief Operating Officer, APAC for Bravura Solutions, based in our Melbourne office. Jason has more than 17 years of experience in software development and services provision, specifically within the financial services industry.

Jason is responsible for all operational functions across the Asia Pacific region, as well as wealth management product development globally.