Portfolio differences between advised and self-directed SMSFs
There is a marked difference in the asset allocations of advised and self-directed self-managed superannuation funds, according to AUSIEX.
Data from the firm said advised AUSIEX clients held less than 60% of their SMSF holdings in ordinary shares in February compared to 87% by self-directed investors.
This was heavily focused on the financial and material sectors where Australia had a high proportion of the ASX 200 but also healthcare and consumer staples.
When it came to holdings in exchange-traded funds (ETFs), these were used by 22% of advised clients compared to 6% for those who were self-directed investors.
This included a particular focus on fixed income ETFs such as Vanguard Australian Fixed Interest ETF as investors expected a better year for bonds.
This indicated advised investors were in a better position to withstand volatile trading conditions through greater diversification in their portfolios, the firm said.
Brett Grant, head of product, marketing and customer experience at AUSIEX, said: “In this environment, trustees are more likely to seek professional advice to help manage risk by diversifying their retirement savings into assets previously not on their radars.
“With balances that are on average four times larger than non-SMSF clients, trustees who seek advice continue to provide a significant business opportunity for planners who can provide quality service to this segment of the market.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
