SMSF trustees are showing greater interest in alternatives as they look to diversify their portfolios, according to Certitude Global Investments.
Certitude Global Investments chief executive Craig Mowll said the market volatility experienced in October has seen SMSF trustees re-evaluate their asset allocations.
As trustees look to assets like global equities he said they are also considering hedge funds, infrastructure and even private equity as other ways of diversifying their SMSFs, Mr Mowll said.
“They’re now realising alternatives are a good way of having an investment in markets where there is a fair bit of volatility,” he said.
Mr Mowll said the performance of Australian equities and fixed income is making it more difficult for SMSF trustees not to consider other types of assets in their portfolio.
He said advisers are playing a key role in assisting their SMSF clients to determine what assets they should diversify with and what proportion of their SMSF they should allocate.
“There are a lot of strategies individuals need to get their head around so having an adviser to help them with asset allocation is critical,” he said.
“We’re seeing a lot more contact from advisers asking us lots of questions and even asking for more education material to help them have those conversations with their clients.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2017ATO releases position paper, penalties approachBy Katarina Taurian
- 21 Aug 2017Top investment mechanisms for tax savings revealedBy Staff Reporter
- 21 Aug 2017SMSFA appoints high-profile Australian as patronBy Staff Reporter
- 21 Aug 2017Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 21 Aug 2017Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- view all
- Top investment mechanisms for tax savings revealed
While super remains one of the most tax-effective ways to save for retirement, if you’re unable to stay within caps then it may be worth c...read more
- view all