SMSFs driving APRA funds to innovate: Mercer
The increasing popularity of SMSFs is driving traditional funds to develop solutions that are more tailored to their clients, according to new research from Mercer.
A research paper stated there has been an increase in the number of traditional super funds offering direct investment options.
“This provides existing members with a facility to directly purchase shares, term deposits, exchange-traded funds, infrastructure and property within the super fund structure,” the paper said.
The report argued that direct investment options have a clear advantage over SMSFs since members can access unlisted assets not available within an SMSF structure.
The paper noted, however, that bolt-on SMSF servicing means choosing between APRA-regulated superfunds and SMSFs may no longer be a mutually exclusive choice.
“The emergence of SMSF servicing solutions provides members the freedom of running their own superannuation account, while retaining the scale benefits of an institutional fund and receiving assistance with the management of required administration and compliance functions,” said the paper.