POWERED BY MOMENTUM MEDIA
SuperConcepts names Top 10 exotic SMSF assets
SuperConcepts has revealed an analysis, based on 2,450 self-managed super funds (SMSF), which identified the top 10 exotic SMSF assets and why trustees typically invest in those assets.
Those were:
- Frozen semen
- Commercial laser
- ATM
- Commercial washers and dryers
- Water vending machine
- Water rights
- Not your mothers sewing machine
- Cattle
- Taxi plate
- A beaut Ute
The most common exotic investments were split into two categories: “collectible” or “in-house assets”, with each of them having strict rules around how the assets should be treated.
Related News:
UK to boost investments via super fund sector
Future Fund to manage infrastructure and property in-house amid global volatility
The study described in-house assets as any asset subject to a loan or lease agreement with a related party or an investment in a related company or trust. SMSFs were not allowed to invest more than five per cent of its total fund assets in this category.
Additionally, some assets were specifically excluded from being an in-house asset, such as commercial property.
On the other hand, collectibles and personal use assets were a broader category that included artwork, jewellery, antiques, artefacts, coins medallions and bank notes, postage stamps and fist day covers, rare folios, manuscripts and books memorabilia, wine or spirits, cars, recreational boats, memberships of sporting or social clubs, and other assets used or kept primarily for person use or enjoyment.
According to the report, this category was characterised as the area where SMSF investment passion was on full display.
Simlarly to the first group, also collectibles are governed by a set of rules which included the following restrictions:
- Asset not leased to a related party
- Asset not stored in a private residence of a related party
- Documented decision of asset storage
- Asset to be insured within seven days of acquisition in the SMSF’s name
- Asset not used by a related party, and
- If asset disposed of to a related party must occur at market price assessed by a qualified independent valuer
Recommended for you
The corporate watchdog is preparing to publish a progress report on private credit this September, following a comprehensive review of the rapidly expanding market.
The fund has appointed Fotine Kotsilas as its new chief risk officer, continuing a series of executive changes aimed at driving growth, but NGS Super’s CEO has assured the fund won’t pursue growth for growth’s sake.
AMP Super has taken a strategic stake in Atmos Renewables, funding major battery and wind farm projects to boost Australia’s clean energy transition.
The major superannuation fund is facing legal action from ASIC after allegedly failing to inform the regulator about investigations into serious member service issues.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 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(%)
