Equity in superannuation debate promotes SMSF benefits

self-managed-super-funds/self-managed-super-fund/SMSFs/smsf-trustees/SPAA/superannuation-funds/retirement-savings/asset-allocation/chief-executive/trustee/

16 April 2012
| By Staff |
image
image
expand image

Recent questions around superannuation funds' exposure to equities have promoted the benefits of self-managed super funds (SMSFs) in delivering flexibility, according to the Self-Managed Super Fund Professionals' Association (SPAA). 

SPAA chief executive Andrea Slattery pointed to a report by Rice Warner Actuaries showing SMSFs outperformed broader superannuation vehicles, adding it was of crucial importance for investors to be able to actively manage their retirement savings.

"There is 'no one size fits all' when it comes to saving for retirement, so it is important that individuals have the flexibility to work out the optimal weighting for their portfolio, and a SMSF is the only vehicle which gives the investor the autonomy and flexibility to decide when and how to adjust their asset allocations," Slattery said.

Recent research by SPAA and Russell Investments found that one third of SMSF trustees believed equities were too volatile - double the number from 2011.

"The investment behaviour of individuals tends to change as they approach retirement and become more concerned about wealth preservation and seek more liquidity in their asset holdings," she said. "With an SMSF, as a trustee you have the choice of how you structure your asset allocation based on your personal circumstances and the retirement stage you are in."

Slattery's comments followed a recent report by Multiport which found allocation to cash in SMSFs is at its highest levels in two years, while allocation to Australian shares has shrunk for the fourth consecutive quarter.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS