Super - Spaceship "Invest your Super in a diversified portfolio with technology at its core"

So, I saw an ad for Spaceship Super which is launching next month and decided to take a look.

They advertise up to 35% of the portfolio is invested in technology stock, as opposed to banks and mining, and promise transparency on which funds are included in your managed portfolio (they only have one product at the moment).

Most people have their Super overweight in the big 4 banks and BHP and yet, our generation has seen technology completely immerse itself in society. We’ve watched the five most valuable companies in the world become technology companies. Locally, we’ve seen companies like Atlassian start from scratch and grow to be more valuable than Qantas.

We use technology everyday. We use Snapchat way too often. We go home to Netflix. On weekends we’re in Ubers. When we go on holidays we’re using Airbnb. Yet, technology hasn’t spread through Super like it has society. At Spaceship, we aim to make that happen.

I'm currently with an industry fund and pay $1.50 per week for admin + 0.9% indirect investment costs, moving to Spaceship would keep the admin fee the same but increase the indirect costs are almost double at 1.6%.

Transparency is always a good thing when you are a customer and inspires trust, but as a new company without any previous history how can you assess the risk?

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Comments

  • +2

    Just for balance, Myspace tanked after being bought out, theglobe.com was a billion dollar darling and barely launched (if it even did), Theranos is in the process of being one of the biggest scams in corporate history. Sounds a bit like bingo super to me.

    • +1

      Isn't snapchat launching an IPO as well? (And facing stiff competition from a few other startups?)

  • +3

    Yeah, I'm really negative on Spaceship. Very high fees (compared to industry funds) will cost you hundreds of thousands over the life of the account. No past history, no evidence that tech stock will deliver better returns.

    They mention becoming VC once they reach a certain level of capitalisation, but provide no road map, and even then, that sounds insanely risk heavy.

    Plus, Mike from Atlassian really annoys me.

    • Atlassian is an internationally successful company, so it doesn't matter even if they annoy anyone.

      • Oh I'm sure Atlassian is great, but Mike (and Atlassian) avoids paying tax in Australia, and lists overseas rather than here. Plus he keeps appearing on my feeds to encourage tech worshippers to invest in the dumbest superannuation idea since SMSF's.

  • +3

    Fees are higher because you're investing in US tech stocks, rather than primarily Aussie stocks/bonds like a local industry fund.

    I think it's a pretty silly idea to use this service (and overexpose yourself to technology sector), but to each their own.

    Anyway, a (much cheaper) US Stocks Index fund will give you pretty much the same exposure to Tech Stocks, seeing as they already make up a large chunk of the S&P500.

  • Yeah, as much as I love the idea behind investing in tech companies I just can't justify paying over double the fees of my existing fund. I'm willing to pay higher fees for higher returns to a degree but everything has a limit.

    • The main concern is that they don't/ can't promise higher returns either.

      • +1

        Of course, but then nobody can. It's still too early, but if they were able to show that on average they outperformed a "standard" fund by X% then you might be able to say "Ok, on the balance I can still profit", but day 1? No way.

  • Just went to fill out the early sign up form…not keyboard accessible. As a developer, I judge. I have learned to be wary of tech companies that aren't doing their own tech right.

  • Absurd fees and all they are doing is buying ETFs (which also have fees). You will not own direct shares in Apple etc. They also incorrectly use "Inquiry" instead of "Enquiry" in their PDS which annoys me!

    A bad product which was rightly slammed in the AFR today.

  • they have added a referral program
    ozbargain's random referral link is below:
    https://ozbargain.com.au/deals/spaceshipinvest.com.au

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