The attached article looks at how Self Managed Super Funds (SMSF’s) are becoming a bigger part of the superannuation industry in Australia.
Of note the article outlines key things about the Australian market including:
- $2.2 trillion in superannuation as at December 2016
- $656 billion (or 29.8%) of that is in SMSFs
- 1.1 million Australian’s across 587 thousand funds use a SMSF to manage their superannuation
Key insights from the report include those that set up a SMSF:
- That they do so primarily for control, to choose what to invest in and to save on fees
- To achieve a better return (10.9% as opposed to ASX all ordinaries of 3.7%)
- To increase their portfolio diversity yet over 50% invest in just one investment type outside of managed funds
- To diversify in times where there is market volatility (55% hold a defensive allocation)
Have a growing appetite for managed funds