The establishment of self-managed superannuation funds (SMSFs) is likely to spike as investors become restless in their poorly performing, high-charging superannuation funds, according to Investment Trends principal Mark Johnston.
“When you have a prolonged bear market you see a spike in the establishment rate — people start to see their super fund not returning well and view the fees as too high,” he commented at the Self-Managed Super Fund Professionals’ Association of Australia national conference.
Johnston added that the increasing introduction of SMSF assets on platforms would also help feed growth in the sector.
“Traditionally, only a small proportion of SMSF investors used financial advisers, but over the last few years platforms have been making themselves more SMSF friendly,” he said.
“Then along came Simpler Super and adviser use increased.”
However, he reassured delegates that the expected trend is for costs to remain low as competition in the sector increases along with efficiencies.
