SMSF adviser logo
subscribe to our newsletter

SMSF uptake by wealthy on the rise

Money, wealth
By Miranda Brownlee
14 December 2017 — 1 minute read

Despite the introduction of the transfer balance cap, the portion of high-net-worth investors with SMSFs is increasing, a recent study has revealed.

The Investment Trends 2017 High Net Worth Investor Report indicates that 69 per cent of the 435,000 investors with over $1 million in investable assets outside of their own home, business and non-SMSF super, now have an SMSF.

Investment Trends senior analyst King Loong Choi said this has increased since 2014 when 65 per cent of high-net-worth (HNW) individuals had an SMSF.

Mr Choi said the number of HNW investors has risen for the first time since 2014 this year, with the total number increasing by 10,000 or 2 per cent over the last 12 months, following two consecutive years of decline.

“Nationwide, the HNW population is estimated to control $1.7 trillion in investable assets, up 12 per cent over the last 12 months,” he said.

“Total investable assets collectively controlled by HNWs reached a five-year high in 2017, and this growth is driven by both an increase in the number of HNW individuals and also existing HNWs becoming wealthier.”

The total cash holding of HNW investors is estimated to be $290 billion, with many HNW investors expecting to face investment related challenges in the coming year, according to the survey.

“Right now, the perceived threat of another global financial crisis and difficulties in investment selection are the two biggest concerns of HNWs,” said Mr Choi.

The research report also indicates that the use of financial advisers among HNW investors has fallen to a five-year low, with 68 per cent of HNWs relying on the expertise of some form of financial adviser in 2017, down from a high of 74 per cent in 2013.

“Despite this decline, there is a significant opportunity for advice providers to expand their footprint in the HNW market given that over half of HNWs or 53 per cent say they have unmet advice needs,” said Mr Choi.

“Right now, HNW investors have a range of unmet advice needs that most often centre around investment strategy and retirement.”


SMSF uptake by wealthy on the rise
ausmoney 382
smsfadviser logo
Miranda Brownlee

Miranda Brownlee

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: miranda.brownlee@momentummedia.com.au

Comments powered by CComment


Get the latest news and opinions delivered to your inbox each morning