POWERED BY MOMENTUM MEDIA
SMSF enquiries turn up
CPA Australia members are reporting a significant increase in enquiries from superannuants about setting up self-managed super funds (SMSF), according to CPA Australia superannuation policy adviser Michael Davison.
“We’re certainly getting feedback from our members that they are getting a lot more enquires from investors wanting to establish SMSFs.
“This suggests investors are asking the question, although ATO [Australian Taxation Office] statistics suggest they haven’t actually moved yet — but history suggests that we’ll see an increase this year, probably before the end of the financial year.”
If a spike in SMSFs does occur it will be in line with a trend in the previous two stock market downturns, where there was a flight into SMSFs, Davison said.
“It appears that in bad times, when investors are getting negative returns and still paying fees, they develop a mindset that they can lose money for themselves without having to pay fund managers for it.
“It will be interesting to see whether we have a spike again or if there is recognition that their poor returns this time around is part of a global downturn that is all-encompassing.
“You’re not going to avoid its implications by investing for yourself.”
Davison said it would also be interesting to see whether advisers are in a better position to talk people out of establishing SMSFs as a knee jerk reaction to poor super fund performance.
“It would be unfortunate to see people jumping ship from their super fund to establish a SMSF only to crystallise their losses or miss out on any potential upside opportunities if and when they come.”
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
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
