CareSuper’s chief executive officer Julie Lander told SMSF Adviser that trustees are unaware of their investment returns, adding they put capital movement aside and only concentrate on dividends when buying shares.
“From the conversations I have had with people with SMSFs you can see that they are a bit like punters,” Ms Landers said.
“They will tell you about the shares they bought that went up in price, but they don’t tell you about the ones that fell in price [so] when you ask them ‘what did your super fund return last year?’ they actually don’t know.”
While Ms Lander does believe there are “legitimate reasons” for people to leave an industry fund and set up an SMSF, CareSuper argues the control trustees seek over their assets can largely be achieved within an industry fund.
“We do have a direct investment option, which enables people to select their own shares and term deposits and ETFs… It gives people who are after more control, that control and without the hassle having to establish a separate entity,” Ms Landers said.
Hmm its called choice, alot of people donot have a clue about Financial matters, industry funds suit them well, keep in the dark give no advice, sorry your labour mates have tailoredt FOFA to suit, dont know to may advisor that have a call centre, But thats right you are there for members & dont pay comms to advisor, certanily spend alot of money on advertising/sponsorship to get this point across & you will look after them, that is great when , Get you hand of it!!! sorry you now have telephone based advisor pushing a conflicted product advice. Scaled advisor like getting some one to bulid house but only builds 10% of the house the rest your on your own
yeah – because retail funds have performed soooooooo well.
Very poor comment from Ms Landers. If superannuation returns were adequate then SMSFs would not exist. To compare trustees of SMSFs as punters is incredulous
Just another example of industry funds having a go at other market participants. Net effect – whole superannuation industry is undermined in the eyes of consumers. Also its inappropriate for anecdotal evidence to be presented in this way.
The failing of this article starts at “From the conversations I’ve had with people with SMSFs”. Nice one Ms Landers, how very scientific of you.
Purely opinionated rhetoric designed to promote Industry super…like promoting a Hyundai over a Mercedes
I dont know where the CEO of Care Super is coming from . What an absolute load of trash talk . the last thing Care should be offering is direct share investment. Who at Care is going to make the call when to hold them and when to fold them .75% of fund managers cant beat the ASX 200 over 5 year periods, so why would you offer the option to your members. Going down this path is going to land Care in some serious trouble , because clients will think that Care is doing that work . Pfff
Many investors track the performance of their portfolios using published data from Morningstar or the ASX. Tracking their performance is made more difficult when investors contribute a regular amount into a fund, and even more so when additional contributions are made sporadically.
Investment performance firstly needs to be separated from the increase in portfolio value as a result of adding additional funds, or withdrawing funds for accounting, administration or advice fees, insurance premiums or taxation payments.
First Dollar software provides an easy-to-use application providing a set of interactive tools to accurately measure, and review the actual financial returns of superannuation fund accounts and any other investment structure. Investors can then compare how different portfolios perform against each other and against other investment alternatives – for any chosen time-period.
How many investors really understand the ‘true’ return of their portfolios?
I am advised that the Care Super Direct Investments ‘platform’ only enables choice of TDs offered by one supplier – the platform’s ‘JV partner’ – and a TD period cannot be more than one year. How conflicted and unhelpful is that? Are they really hoping to win over SMSF Trustees with this functionality?
And lets not forget that all the access to “Direct investments” comes with memeber fees, admin fees, member protection(WTF) and of course the good old MER…….
Yeah cause funds controlled by the Union and Labour cronies is much better than people having control to choose their investment strategy. Dividend yields are fine as a return. Buy 12 months ago at low market and receive 7-9% franked dividends for retirees and most of the imputation credits back in an SMSF… Its the industry funds who need investment advice..:)
These comments are not instructive, or even particularly enlightened. They are spin, to provide a platform to spruik the latest flavour of the month for industry funds. “Look at me, look at me, I offer direct shares.” As exciting as this may be for industry funds and CareSuper I would argue that most SMSF trustees have a very good idea of the performance of their funds. Some may measure it by a different metric, but it is a metric that is meaningful to them and of their choosing. CareFul CareSuper, that sounds like control.