POWERED BY MOMENTUM MEDIA
More advisers helping establish SMSFs
Almost two-thirds of advisers are assisting with establishment of self-managed superannuation funds (SMSFs), up from 54% in 2021.
The research firm found establishments of SMSFs had reached a three-year high and advisers were seeking to work closely with accountants, who were the traditional port-of-call for new trustees.
They also welcomed new regulatory measures for SMSFs which included a reduction to the downsizer contribution age limit and the work test exemption as they expected these would alleviate a lot of the operational challenges they faced.
SMSF assets had increased by 15% to $877 billion, a three-year high.
Dougal Guild, research director at Investment Trends, said: “The positive business outlook is consistently shared by most accountants, with nearly half expecting SMSF revenue to increase in the next three years. Interestingly, both SMSF advisers and accountants are looking to strengthen relationships with each other this year to enhance their client value proposition for prospective clients”.
However, SMSF advisers had seen a slight decrease in the share of revenue contributed by SMSFs at 24% down from 27% in 2021 which the firm attributed to rising administration and compliance costs.
Client education and knowledge of SMSFs was also a concern as advisers felt clients was not always aware of their benefits.
“The ability to comprehensively demonstrate a SMSF is in the client’s best interest is a key pain point that advisers felt are holding them back from setting up more SMSFs. Advisers want to feel better equipped to educate current and prospective clients and are calling for content that can help their clients evaluate their own suitability,” said Guild.
Last week, research by Wealth Data found the net SMSF assets per adviser had doubled in three years from $22 million in 2019 to $51 million in 2022.
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
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
