SMSFs need advice to move away from cash
Lack of access to appropriate financial advice and education was preventing self-managed super fund (SMSF) trustees to consider global investment opportunities, despite a willingness to do so.
Such was the finding from a report released by Zurich, which found that more than half (51.5 per cent) of SMSF trustees would consider reallocating cash to international equities if they had access to advice and education.
Over one-third (35.2 per cent) said they would prefer to get their advice from a financial adviser, with only 13.1 per cent favouring their accountant.
National sales manager, Linda Stangherlin said it was encouraging to see the value of professional advice even among SMSF trustees, many of whom were self-directed.
"Whilst there is clearly angst amongst SMSF trustees, and indeed all investors, about the continuing low cash rates, a lack of knowledge and perceived tax and currency risks are quelling enthusiasm for global opportunities," Stangherlin said.
More than half of SMSF trustees surveyed (51 per cent) said they were unhappy with their cash investment performance, while almost a third (32.2 per cent) said they wanted to allocate away from cash within the next 12 months.
The survey, conducted by CoreData on behalf of Zurich, also showed one in seven trustees wanted to increase their exposure to international equities over the next 12 months.
Over half (50.8 per cent) of those likely to invest internationally would choose a managed fund, while 27 per cent would choose direct investments and 11.1 per cent would choose exchange traded funds.
AUTHOR
Malavika Santhebennur
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
