While SMSFs now represent one-third – or $506 billion – of the superannuation industry, only a small percentage of investments are directed to managed funds, Mr Gonzalez told SMSF Adviser’s sister publication InvestorDaily.
“Key to capturing this growth will be the ability to develop products that are distinct, innovative and meet a clear need and, as a result, provide a clear value proposition which will be better able to attract an attractive margin,” he said.
“It’s not that people are against managed funds; they just tend to do what they can do themselves,” he added.
“The challenge for a lot of asset managers is the need to offer products that have a very clear value proposition.”
Due to the complex nature of these funds, innovative and more tailored solutions with low volatility between three and five per cent are where self-directed investors will find value, Mr Gonzalez said.
“We tell the investor what they are going to get for the next six months every month, they get franking credits and it’s an attractive yield,” he said.
“For investors looking for alternatives and who manage their own money, we can do that because it is actually quite complicated.
“You need very skilled fund managers to be able to put that together and deliver an outcome. The average man on the street cannot do that. That’s where investors get the value.”