POWERED BY MOMENTUM MEDIA
SMSFs looking to cryptocurrency for diversification
Cryptocurrency is becoming more attractive to self-managed superannuation funds (SMSF) as it is now being seen as an alternative to gold as a store of value, according to Cointree.
The cryptocurrency exchange’s chief executive, Shane Stevenson, said SMSFs were attracted to the capital gains of cryptocurrency and that it was a new asset class.
Stevenson noted as cash, term deposits and bonds had less appeal due to historically low interest rates, SMSFs were finding cryptocurrency more appealing.
“How they invest however, depends on whether they are in the accumulation or retirement phase, and fund’s risk profile and where fund members are at in their superannuation journey,” he said.
He said those in the accumulation phase were prepared to take more risk and those in retirement phase took a “far more” cautious approach with cryptocurrencies typically a smaller percentage of their portfolios.
“We’re seeing is that the investment dovetails with the goals of the fund and aligns with their investment strategy,” he said.
“There are still hurdles limiting SMSFs from investing in cryptocurrency. It’s a relatively new asset class and many financial advisers lack experience with this type of investing. But this is changing. Cryptocurrency is proving to be an attractive option for many SMSFs that have done their research and are comfortable with the risk.”
Stevenson said his firm had seen 53% more SMSF applications in the last three months than it did during 2020.
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
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
