SMSFs a growth opportunity for financial planners
Self-managed super funds (SMSFs) represent a significant growth opportunity for financial advisers, particularly for those who choose to specialise in the sector, according to the Vanguard Investments/Investment Trends Self Managed Super Fund Planner Report released last week.
The report, which examines how Australian financial planners interact with SMSF investors, revealed that while SMSFs accounted for 19 per cent of planners' funds under advice (FUA) - down from 23 per cent in 2011 - those who were classified as SMSF specialists increased the proportion of their FUA from 46 per cent to 50 per cent of their total FUA.
Furthermore, the report found that most planners still expected their SMSF revenues to increase as a percentage of their practice revenue in 3 years.
Commenting on the research, Michael Lovett head of intermediary distribution for Vanguard said that the benefit to financial advisers in terms of revenue was clear.
"In what is a challenging environment for advisers, with 468,000 SMSFs in existence at the end of March 2012, there are clear opportunities that exist for planners who choose to adapt to the specific needs of this sector," he said.
"We know from an investor report into this sector that SMSF trustees feel they have unmet advice needs in areas such as protecting assets against market falls, investment strategy and income generation.
"Important to note also is the fact that this recent investor report showed that SMSF clients are clearly looking for a new kind of modular service from their adviser, and are now prepared to pay up to $2,000 for additional advice."
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
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.
