Portfolio differences between advised and self-directed SMSFs

There is a marked difference in the asset allocations of advised and self-directed self-managed superannuation funds, according to AUSIEX.

Data from the firm said advised AUSIEX clients held less than 60% of their SMSF holdings in ordinary shares in February compared to 87% by self-directed investors. 

This was heavily focused on the financial and material sectors where Australia had a high proportion of the ASX 200 but also healthcare and consumer staples. 

When it came to holdings in exchange-traded funds (ETFs), these were used by 22% of advised clients compared to 6% for those who were self-directed investors.

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This included a particular focus on fixed income ETFs such as Vanguard Australian Fixed Interest ETF as investors expected a better year for bonds. 

This indicated advised investors were in a better position to withstand volatile trading conditions through greater diversification in their portfolios, the firm said. 

Brett Grant, head of product, marketing and customer experience at AUSIEX, said: “In this environment, trustees are more likely to seek professional advice to help manage risk by diversifying their retirement savings into assets previously not on their radars.

“With balances that are on average four times larger than non-SMSF clients, trustees who seek advice continue to provide a significant business opportunity for planners who can provide quality service to this segment of the market.”