Whitepapers

Whitepapers

1/ Is financial advice worth it? We examine whether one reason that large SMSFs     out-perform small SMSFs could be due to the value of advice.

SMSF Benchmarks is neutral about whether you should have an SMSF, how you should invest or whether you should use an adviser. We are all about giving investors better information.

What we do know is that around 30% of SMSFs use an adviser. Is financial advice worth it? There’s a lot of discussion about fees, but not a lot of independent research into the value of those fees.

It has been widely reported that large SMSFs tend to out-perform smaller SMSFs. This could be because fixed fees are proportionately lower for large funds, it could be that larger funds tend to be in pension phase, so pay less tax, or it could be because larger funds can access direct property more readily than small funds.

So we removed those factors and examined whether larger SMSFs still tended to outperform.

Read our report here:

Performance Comparison of Advised Vs Self-Directed SMSFs

 

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2. Designing Benchmark Portfolios for Self-Managed Funds

There are serious limitations with existing benchmarking information for SMSF investors, which means they may be making investment decisions based on inappropriate information.

Our SMSF Benchmark Portfolios have been designed using a robust approach. They are easy to understand, cover the complete asset classes, and are relevant and useful for all SMSFs, however they are investing.

There are two benchmark portfolios catering for investors with direct property, and nine other benchmark portfolios, with different deciles of “Growth assets”, allowing us to give investors good information about how their behaviour has influenced their performance, over time.

This should lead to better outcomes over time – for the benefit of individual SMSF investors and for the overall SMSF community.

Read our Whitepaper here:

Designing SMSF Benchmark Portfolios

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