CFS trims corporate super distribution team

Colonial First State (CFS) has handed redundancies to about seven distribution staff working on its corporate superannuation offering as inflows into FirstChoice Employer stall.

The departures - all business development managers - come as FirstChoice Employer's net assets stagnate even though the retail fund's performance is in the top quartile.

This leaves CFS's corporate superannuation team with 22 people, which includes functions such as business development, member education and relationship management.

CFS's total distribution team is still over 100 people.

A spokesperson for the business said there were no other redundancies on the distribution team apart from the 'handful' of roles impacted by the changes that CFS has made.

"FirstChoice Employer Super continues to be an important superannuation offer for over 280,000 members and is the chosen default super fund for more than 6,000 employers," a CFS spokesperson said.

"Member preferences for accessing our products and services are continuing to evolve. In response we're making significant investments in services they've told us are important to them, including an improved digital offering and new member app. We've also recently cut fees for over 500,000 members."

FirstChoice Employer Super had $12.15 billion in net assets at end of last financial year and about $11 billion at the end of June, 2017.

The FirstChoice Employer lifestage (1970-1974) has returned 9.7% over three years to June end, compared to the median workplace MySuper product's 8.9% return for the period, according to Rainmaker data.

Commonwealth Bank's annual results announced last week showed that wealth management, which is made up of superannuation, investment, retirement and insurance products and financial planning, turned in $413 million in NPAT, down 42% year on year.

Read more: CFSColonial First StateFirstChoice Employer SuperCommonwealth Bank
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