Master trusts eye self-managed fundsd
Self managed superannuation funds (SMSFs) are the fastest growing area of superannuation, but there are some hurdles for master funds taking over this area.
SMSF specialist Logical Financial Management Australia does not use them for its clients.
Logical director James Cotis says master funds can be expensive, have no flexibility and lack control.
“What people in master trusts are concerned about is trails and not getting the advice that is supposed to be covered by that fee,” he says.
“People are asking about their adviser getting a trail and they never see them.
“What is the adviser doing for that fee?”
Cotis says it is a concern and fund members get angry about it.
“Why do they pay for service they don’t get?
“We can provide the same service as the master trust with full advice and full transparency for less.”
Cotis says clients now want to know about fees in master trusts and they demand to know what is happening with the trail.
However, Cotis does admit that in some SMSF cases master trusts do have a role to play.
“There are people happy to use a master trust and pay the additional costs,” he says.
—John Wilkinson
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
