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Survey identifies gaps with diversification for SMSFs

17 May 2018 — 1 minute read

While the majority of SMSF practitioners agree on the importance of diversification, 27 per cent of advisers believe they could be doing more to diversify their clients’ investments, according to a survey.

The 2018 SMSF Insights Paper undertaken by Investment Trends and commissioned by BT Financial Group and the SMSF Association, found that diversification is the number one priority when selecting investments for clients for 78 per cent of advisers.

This was followed by capital growth at 48 per cent, capital preservation at 45 per cent, liquidity at 42 per cent and product costs at 41 per cent.


BT head of adviser distribution Jo Moxey said while advisers see their ability to offer well diversified portfolio construction as a key part of their value proposition, only 73 per cent are confident that their SMSF clients hold well diversified investments.

The survey also found that 62 per cent find it difficult to diversify their SMSF client portfolios, compared with their non-SMSF client portfolios.

Around nine in 10 (89 per cent) consider a portfolio of managed funds, direct shares and property to be diversified, while 87 per cent believe investments across four or more asset classes is ideal.

“Diversification can be achieved in a variety of ways, but having access to a broad range of investment options is vital,” said Ms Moxey.

Survey identifies gaps with diversification for SMSFs
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