‘Acceleration’ of alternative assets in SMSFs
There has been an “acceleration” towards alternative assets by self-managed super fund (SMSF) investors, according to Blue Sky, with investors potentially “disenchanted” by traditional investment opportunities.
Coinciding with a drop in interest rates, over the last six months Blue Sky has seen increased interest from SMSF investors, Vaughan Henry, national relationship manager at Blue Sky Alternative Investments told SMSF Adviser.
Although Australian SMSF investors don’t hold a high level of alternative assets, interest is coming from both SMSF trustees and advisers who are “keen to discuss alternatives to traditional options for their clients,” Mr Henry said.
“I think investors are looking for something different, they’re taking control through SMSFs ... With rates coming [down] they’re not looking for the same old answer.
“The investment community and as such, the adviser community, particularly the [independent financial advisers], are embracing these assets instead of fighting against them.”
Mr Henry sees movement towards alternative assets continuing, drawing attention to the engagement with alternative assets on an international scale.
“Some [international investors] have more than half their portfolios in alternatives. There’s a long way to go for our self-directed investors and our SMSFs [but] it’s a significantly growing part of their portfolios,” he said.
Mr Henry added that although assets may be classed as ‘alternative,’ they are not necessarily unknown.
