Self-managed superannuation fund (SMSF) trustees and their advisers will become advocates for managed portfolios once the administrative benefits are realised, according to Hub24.
The investment platform provider’s white paper “The cross-generational appeal of managed portfolios” found managed portfolios were an attractive investment for all generations of investors.
Hub24’s managing director, Andrew Alcock, said this was due to a variety of benefits associated with direct asset ownership that they present to investors — including greater flexibility, cost reduction, transparency, and better control of tax outcomes.
“Younger Gen X and Gen Y investors are typically time poor and tech savvy. They are looking for more transparent alternatives to managed funds that enable greater engagement with individual securities, but with more professional insight than if they were to select and invest in equities themselves,” Alcock said.
“The broad appeal has meant these younger investors… are accessing managed portfolios as a logical way to start their investment journey.”
Alcock added that managed portfolios were “a great fit” for SMSFs and their advisers, with SMSF trustees often looking for “greater control, choice and transparency” of assets — a claim that was backed by the paper’s predictions.
“Both SMSF trustees and their advisers will likely become advocates for managed portfolios, once they have a better understanding of how managed portfolios can reduce the administrative burden,” the white paper states.
“Looking forward, we think that further changes will allow individual tilts and stock exclusions in managed portfolios at the level of each individual client. These changes will allow for further customisation of portfolios, more client-focussed outcomes for investors and greater efficiencies for advisers in dealing with unique client requirements.”
