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 week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to discuss Australia’s stagnating productivity ahead of the government’s economic reform roundtable, and how picking all the “low-hanging fruit” for reform in the ’90s helped kick off a surge that has since stalled out.
In this episode of Relative Return Insider, host Keith Ford is joined by Cyber Daily deputy editor David Hollingworth to take you inside the evolving landscape of cyber crime, how even huge companies can be at risk of breaches, and what that means for anyone trying to understand the risks.
The latest episode of Relative Return sees host Laura Dew chat with Richard Ivers and Mike Younger, co-portfolio managers at Prime Value Asset Management, on their newly launched Microcap Fund and opportunities in small and mid-cap shares.
In this week’s episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford dive into the week's top news, from investors remaining blasé about tariff announcements to bitcoin surging and unemployment numbers.
