The bank yesterday rolled out its superannuation master trust that is tailored for the workplace environment.
ASB Bank manager group superannuation Burton Shipley says the key advantages the bank's product has is that it has low fees (because it mainly uses passive funds), there are low contribution levels and the technology behind the trust is advanced.
He claims the trust is the most technologically advanced one in New Zealand with a registry system built for recording and tracking investment activity and online reporting is planned.
Shipley acknowledges the bank has been late getting into this market, however he is confident it can do well.
"Our research shows that New Zealand's retirement savings market is poised for change."
Shipley says there is a growing awareness from companies to provide superannuation as part of a remuneration package.
He says a couple of things are driving this change. One is that providing superannuation is a good way for an employer to retain good staff. Secondly, the compulsory Australian system is having an impact in New Zealand.
Shipley says there is a trend for New Zealand head offices to shift across the Tasman. When employment packages are put together from Australia for New Zealand staff workplace super is included as it is the norm in Australia.
Currently the trust is offering a range of diversified and single sector investment options made up of four balanced funds (three passive and one active). Each option has a different composition and risk profile.
ASB is using AMP as its manager for New Zealand and international because "they offered what we wanted," Shipley says.
He says the investment manager decisions were made before Commonwealth Bank acquired the Colonial First State Investment business.
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