Kogan enters $2.7 trillion super industry
Online retailer Kogan.com is targeting a slice of Australia’s $2.7 trillion superannuation industry with its own-brand fund.
Kogan.com, which has already branched out from its core retail operations into mobile communications, home internet and insurance, has signed a deal to distribute a March & McLennan-owned Mercer product under the Kogan brand.
The company claims the fund’s fees will be among Australia’s cheapest.
“This partnership will deliver a no frills superannuation offering with ultra-low fees that will enable Aussies to retain and preserve more of their personal wealth,” Kogan.com co-founder David Shafer said in a statement.
Under the agreement, Kogan.com will provide the branding, marketing, and experience as an e-commerce platform, while Mercer will operate the fund and provide customer service.
“As one of the largest superannuation providers in Australia, with more than US$11 trillion under investment advisement and more than US$240 billion assets under delegated management globally, we are able to use our global scale and expertise to drive competition and get better results for clients and members,” Mercer chief executive and managing director Ben Walsh said.
Kogan.com, which claims 1.45 million active customers, is aiming to launch the product early in 2019.
There were 28.6 million superannuation accounts with $2.7 trillion in assets at June 30, according to Association of Superannuation Funds of Australia.