SMAs’ transparency proves popular with SMSF trustees
Separately-managed accounts’ (SMA) centralised reporting function makes them a superior option to managed funds, particularly following the growth of self-managed super funds (SMSF), a wealth adviser believes.
In addition to flexibility, their tax efficient structure often results in better performance after costs, according to Crystal Wealth Partners’ executive director John McIlroy.
His reasoning is that individual investors’ tax position is not compromised by the movements of other investors, which is not the case for managed funds.
McIllroy said this is particularly beneficial for SMSF trustees, who often seek transparency and flexibility.
The obligation of SMAs to divulge portfolio assets through centralised reporting is a key part of this transparency, he said.
And unlike pooled structures, which can expose investors to unrealised gains and losses, the individual nature of SMAs shields investors from the actions of other investors, McIlroy added.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
