Kogan's low-cost, online-led superannuation fund backed by Mercer Australia has launched today.
The two firms flagged their partnership to launch Kogan Super late last year, promising a "new no frills, ultra-low fee" offering that will disrupt the superannuation industry.
The fund offers five investment options: cash, enhanced indexed growth, enhanced indexed conservative growth, indexed Australian listed property and indexed diversified shares.
It also provides default death and TPD insurance for eligible customers.
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A member invested in the enhanced indexed growth option with a balance of $50,000 for example, will be charged $332 per annum, split into investment fees (0.24%), administration fees (0.33%) and indirect costs (0.10%).
Kogan founder and chief executive Ruslan Kogan said Australians are turning to low-cost super funds to ensure their retirement savings aren't being eroded by high fees.
"By leveraging our digital capabilities and delivering the superannuation needs of Australians online, Kogan Super can substantially cut annual fees for account holders."
Kogan Super is assembled under the retail division of the Mercer Super Trust. Mercer provides superannuation administration, investment management and consulting services to the super fund.
Rainmaker executive director of research Alex Dunnin said the strategic partnership between Kogan and Mercer signal they are serious about this product, which has a "razor sharp" competitive offering.
The competitive pricing indicates that Mercer as the trustee is significantly waiving the fees normally associated with these types of fund-to-product arrangements, he said. "In this way, it appears Mercer is throwing down the gauntlet to the Sargon group that dominates this segment."
Despite the fanfare of millennial super funds such as Spaceship, Grow Super, Zuper, mobiSuper, Superestate and Student Super, Rainmaker estimates that this segment still has less than $600 million in assets and is dominated by two heavyweights - Spaceship and mobiSuper.
Mercer Australia chief executive Ben Walsh commented: "With Kogan Super, we're making it as easy as possible for customers to understand and manage their super whilst delivering digital efficiencies and a simple set of investment options that enable us to keep fees low."