The SMSF Investor Product Needs Report, which draws on a survey of 2,681 investors with an SMSF, indicates that while SMSF investors are in a period of “cautious optimism,” maximising income remains important.
“For the past few years, the pendulum has been on the fear side; it was moving back towards optimism, but a lot of caution has emerged in 2014,” the report says.
In 2014, 23 per cent of respondents to the survey declared ‘maximising capital growth’ as their main investment goal over the next year, the highest number in the past six years, compared to 2011 when having a growth priority dipped as low as 14 per cent.
“Those SMSF investors wanting to balance growth and managing risk stood at 32 per cent in 2014, the second highest number over this six-year period – it stood at 34 per cent in 2013,” said senior analyst at Investment Trends Recep III Peker.
“At the same time, building a sustainable income stream fell to 33 per cent in 2014, the lowest number over the past six years. In 2011, this was the main priority of 45 per cent of SMSF investors,” he said.
The research also shows SMSF investors continue to be attracted to ETFs and LICs, which have been on the growth path in this sector for the last three years.
Morningstar’s Grant Kennaway, director of manager research, Asia Pacific, also said the research indicates that SMSF investors are also looking for specialist advice in areas such as tax planning, the age pension, retirement planning and setting up an SMSF.
“There’s clearly strong market demand for all types of advice, including independent investment research, and a real opportunity for those businesses capable of meeting it,” he said.