SMSF trustees find investment selection was their most difficult task

Depositphotos_19793657_resizedDespite more than half of self-managed super fund (SMSF) trustees wanting more control of their investments, 27 per cent said investment selection was their most difficult task, according to a survey.

The Investment Trends research based on AMP investors found 24 per cent found keeping track of changes to SMSF rules and regulations most difficult, followed by paperwork and administration (23 per cent), and finding time to research investments (19 per cent).

Commenting on trustees finding their own investments, AMP Capital head of self-directed wealth and SMSF, Tim Keegan, said “It is a task they largely do on their own: 44 per cent stated they make all the investment decisions for their fund, 23 per cent said decisions are made together with another member, and 17 per cent make joint decisions with their financial adviser.”

“There is a segment of trustees who want advice, particularly in relation to finding the right mix of investments in order to meet their goals. The research also found they would like advice on pension and investment strategies, inheritance, and estate planning.”

The survey also found 41 per cent of trustees had long-term aspirational goals as the biggest driver of their investment decisions, 39 per cent had the need to fund additional personal goals, and 37 per cent for meeting day-to-day expenses.

“They are seeking international diversification, access to different investment strategies, and access to investments otherwise out of reach,” Keegan said.

He noted the most popular managed fund in terms of where trustees are likely to put their money during the next 12 months was international equities.

Source: Jassmyn Goh
Money Management