Vanguard Australia’s head of super Michael Lovett is leaving the firm at the end of February after 11 years, three months after the launch of Vanguard Super in November.
Well known for its low-cost indexed products, Vanguard Super is a formidable competitor in the industry and competitors were expecting the firm to pick up around four to eight per cent of the $3.4 trillion market.
Vanguard had claimed at launch that its MySuper default option was the cheapest in the market with an annual fee of 58bps for member balances under $50,000 and for members aged 47 and below. The product adjusts asset allocation 36 times over the course of a member’s life from the age of 47 to 82, compared to the industry average of four to five adjustments.
The US investment giant has plans to launch a pension product for retirees by the middle of this year as well as a portal for advisers to manage client accounts.
Prior to his current role, Lovett was head of the registered investment advisor group at Vanguard’s US head office in Philadelphia and head of distribution for Vanguard Australia before that.
Vanguard Australia managing director Daniel Shrimski said plans to appoint Lovett’s successor were well progressed in a media release announcing Lovett’s departure.
“We will continue to build teams and foster leadership that supports our ambitious strategy in Australia,” he said.