POWERED BY MOMENTUM MEDIA
Superannuation contributions limitations give way to gearing
Limitations around superannuation contributions have given way to gearing in SMSFs, according to the Commonwealth Bank.
Gearing now plays a greater role in the wealth creation process for trustees, according to Moghseen Jadwat, the Commonwealth Bank's head of business development for structured investments.
Jadwat said the rapidly increasing growth of the SMSF market was driving demand for protected lending.
"Employing a conservative gearing strategy under a protected loan can result in an SMSF gaining double the exposure of their super contribution," Jadwat said.
"Generally, an SMSF will get a net tax benefit from a protected loan…this is in addition to the enhanced exposure and potential returns," he added.
The bank said the growth of SMSFs could continue to the point where SMSFs may represent a bigger sector than industry super funds or retail super.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
