Graeme Colley, SPAA’s technical and professional standards director, said SMSF critics ignore the fact that some APRA-based funds allow members to put all their money in the top 300 ASX stocks.
“In recent days we have been told trustees are overweight in Australian equities, especially the fully-franked blue chips such as the banks and Telstra,” Mr Colley said.
“It wasn’t so long ago these same critics were pointing their fingers at SMSFs for holding too much in cash and fixed deposits. Then SMSFs investing in property gets a hiding. Why can’t they ever make up their minds if there is a problem with SMSFs?”
Mr Colley pointed to data published earlier this year by Rice Warner that showed that over the eight-year period from 2005 to 2012, the SMSF sector outperformed the rest of the superannuation industry in six of those eight years.
“With this armour to support the significance of SMSFs and the role they play in the superannuation industry, we now wait for the critics to fall on their swords,” he said.
Graeme, the critics won’t fall on their swords. Instead they will think up any reason to damn SMSFs and promote their own agenda. I don’t know how most of these critics can give advice which is the the best interests of their clients. They ignore the best investment vehicle created in Australia (at least for those saving for the future). If a fund has a good planner/ accountant there should be no problem for the fund to achieve its aims. I know because my clients funds are going very well
Totally agree with Mr Colley; the big end of town is staring at a brand destroying situation.
The idea that pooled, managed funds are the only sane way to invest has been challenged and currently is looking quite sick.
Common sense also supports the tailored investment approach of SMSF instead of a one size fits all “modern portfolio theory ” based approach.
SMSF trustees know what other assets members have, what their members actual planned retirement dates are, what income they will target, how much future contributions are expected etc etc .
Consequently, even if the nominal return from the aggregate of SMSF’s were to be lower, the argument about superior returns elsewhere is largely irrelevant to SMSF Trustees.