POWERED BY MOMENTUM MEDIA
SMSFs putting trust in ETFs
Self-managed superannuation funds (SMSFs) have quadrupled their investment in exchange-traded funds (ETFs) over the last five years, the latest Class SMSF Benchmark Report has revealed.
Over that period, SMSF investment in ETFs jumped from $4.2 billion to $19.6 billion. The portion of SMSFs using ETFs also increased, from 7.9 per cent to 18.9 per cent.
SMSFs also represented a significant portion of ETFs investors at one third, holding more than 50 per cent of total ETF asset value.
The key drivers for ETF investment was diversification, cost-effectiveness and access to international equities.
“The continued growth of ETF investment by SMSFs indicates that investors are increasingly aware of the importance of diversification. The investment opportunities delivered by ETFs provide SMSFs with exposure to a broader mix of assets than were previously available, allowing them to expand their investment horizons,” Class chief executive, Kevin Bungard said.
Recommended for you
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.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment