Kogan.com Limited (Kogan.com, Kogan; ASX: KGN) along with leading superannuation expert Mercer, which is a subsidiary of Marsh & McLennan Companies (NYSE: MMC), have entered into an agreement that will see the promotion of a new no frills, ultra-low fee Australian superannuation fund. Kogan Super will control Kogan.com’s digital efficiency so that it becomes cheapest superannuation options in Australia.
The executive Director of Kogan.com, David Shafer is delighted to have partnership with Mercer to bring Kogan Super to market. Mercer is functioning in Australia for more than 40 years. They possess a quality of a strong leader in in the provision of cost-effective and efficient Superannuation services and a strong history of innovation. The partnership of Kogan with Mercer will help the Australian citizen to retain and preserve more of their personal wealth by delivering a no frills superannuation offer with ultra-low fees.
The company also highlights a thought of Albert Einstein who once said compound interest is the eighth wonder of the world. Those who understand compound interest will earn and those who do not understand might be on the losing side. It is very important for every individual in Australia to understand the power of compound interest working for them. They also need to understand compound interest working for them through low fees or is working against them through low fees by eroding their wealth by giving high fees. The mission of Kogan.com is to offer price leadership by the use of digital efficiency. The company feels proud that they are able to preserve more and more of the hard earned money of Australian citizen by delivering superannuation solution at an ultra-low fee.
The CEO and managing director of Mercer, Ben Walsh says the partnership will be fruitful as it is with Kogan, an expert as an ecommerce leader with the global scale and knowledge of superannuation administration, customer and investment services supplier. He also states that Mercer being Australia’s largest superannuation provider having more than US$11 trillion under investment advisement and US$240 billion assets will be able to use their expertise and global scale to drive competition in order to get better results for the clients and members.
Those industries where the most important thing is scale and cost efficiency, this new partnership will enable Kogan to create value at scale through their online brand and large customer base. As per the agreement, Kogan.com is supposed to provide services related to branding and marketing. On the other hand, Mercer will provide services related to investment management, administration and customer service. Any further offerings made by the Kogan Super will be disclosed closer to the launch date. It is expected to begin in early 2019. Kogan Super is supposed to be an ultra-low fee superannuation fund that will be managing Australian citizen’s superannuation accounts worth 28.6 million. This also considers the combined total of more than $2.6 trillion in assets. Kongan.com has more than 1,450,000 active customers in Australia itself and is the largest ecommerce companies in Australia.
The current market price of KGN share is A$2.74 (AEST 2:45 pm) which is down by 3.521% since morning. The market capitalization is A$266.13 million and PE ratio is 18.81x.
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