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Super fund for women closes

A superannuation fund that targeted women has quietly closed after three years in market.

FairVine Super, a sub-plan of Aracon Super, launched in May 2019 with a product specifically designed for women. The offering included a 'FairRewards' feature which saw members rewarded for making purchases from both affordable and luxury brands through the member portal. It also had a 'Round Up' feature to boost super contributions and froze account fees when members were on parental leave.

Three years on, the fund's responsible entity Equity Trustees has terminated the product, citing "commercial and regulatory developments that impact the future sustainability of the fund" as well as the best financial interests of its members.

It's understood the fund struggled to gain scale, with just 197 members and $7.6 million in funds under management when it was closed on May 31.

The fund also struggled to get off the ground, taking close to two years to officially open.

Initially branded Human Super, the fund was to launch in October 2017 with an offering that included a calculator that helped women convert the current price of online items to the future value of the money they'd be forfeiting in retirement; "A $100 dress that you buy today means that a future you might be giving up $1000 or more - depending on how far away from retirement you are," its website stated at the time.

Human Super's launch was delayed amid fundraising and, a year later, the fund rebranded as BeSuper. That was also short-lived, with the fund ultimately launching as FairVine about six months later.

At that time, it claimed to be cheaper than industry funds, charging an administration fee of 1.09% and an indirect cost ratio of 0.11%. Analysis by Rainmaker Information found that was only true for members with a balance of less than $21,000.

Over time, FairVine increased its fees and its most recent PDS, released March 2021, showed it was more expensive than the typical not-for-profit fund, reporting a fee ratio of 1.13% on a $50,000 balance versus 1.02%.

The fund offered just two investment options, Balanced and Growth. According to Aracon Super's 2021 annual report, since inception they returned 5.1% and 5.0% respectively. For FY21, the balanced option returned 14.5% compared to the average MySuper return of 18%, Rainmaker data shows.

The report shows that, as at 30 June 2021, the lion's share of FairVine's FUM was invested in the SPDR S&P/ASX 200 ESG Fund and Vanguard Index Funds Ethically Conscious. It also had both local and international fixed income investments, cash and Australian listed property investments through Macquarie.

Read more: Aracon SuperHuman SuperBeSuperEquity TrusteesFairVine SuperRainmaker Information