Kogan’s [ASX:KGN] share price rose this morning by 4.58% shortly after opening. The rise comes after announcing its plans to introduce a new no frills, ultra-low fee Australian superannuation fund.
Despite this morning’s rise, Kogan’s shares are down nearly 70% from its record high on 16 March, 2018.
Kogan partners with leading superannuation expert
Kogan has partnered with leading superannuation expert Mercer, a wholly owned subsidiary of Marsh & McLennan Companies [NYSE:MMC] to launch Kogan Super.
David Shafer, Executive Director of Kogan.com, said Kogan’s mission is to deliver price leadership through digital efficiency.
‘Mercer has been operating in Australia for more than 40 years; they have a strong history of innovation, and they are a clear leader in the provision of cost-effective and efficient Superannuation services. This partnership will deliver a no frills superannuation offering with ultra-low fees that will enable Aussies to retain and preserve more of their personal wealth.’
Ben Walsh, CEO of Mercer said that ‘in an industry where scale and cost efficiencies count‘, the partnership will allow Kogan to create value for its customer base.
Under the agreement Kogan will provide the branding and marketing, while Mercer will be responsible for investment management, administration and customer service.
Further details of Kogan Super will be released closer to the launch date, which is anticipated to be early 2019.
Kogan is aiming to manage 28.6 million Aussie superannuation accounts, with a combined total of $2.6 trillion in assets.
Will Kogan’s share price continue to rise?
We can all agree that this is great news for Kogan, although it’s unlikely that this alone will be enough to bring its share value back up to the highs of earlier this year. But that’s not to say that this couldn’t be the beginning of Kogan getting back on track for growth.
Even with the Kogan’s major downward trend over the past few months, the online retailer’s shares are still up by nearly 100% in just over two years. That is still rather impressive when you think about it. It’s definitely a stock you should keep an eye on.
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