SMSF account openings shift from self-directed to advised clients

The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX).

The Australian provider has reported that SMSF growth has continued following the peak of the pandemic. However, most notably the shift has moved from self-directed to advised clients with a particular spike coming in September 2021.

According to AUSIEX, the advised book is 51.3 per cent of all SMSF accounts, the self-directed segment makes up 43.9 per cent and the remaining 4.8 per cent is attributed to advised wrap platform accounts.

“Self-directed investors who not long ago had the time to set up and manage the compliance obligations and direct their investments, may be finding themselves facing both challenging investment conditions and time poor once again,” AUSIEX CEO Eric Blewitt said.

“As a consequence, they may now be again seeing the value in and actively seeking professional advice.

“Advised clients are a distinct group within SMSF accounts and have regained ascendancy over new self-directed SMSF accounts in the second half of 2021.

Advised SMSF clients are far more likely than self-directed SMSF clients to trade ETFs and are also more bullish on AREITs, hybrids and exchange-traded physical commodities.”

Meanwhile, the number of millennial-advised SMSF clients has quadrupled in the last ten years, while females accounted for 28 per cent of new advised principal contact SMSF clients as at February 2022.

The figure is an impressive spike, given females made up just 18.5 per cent of new advised clients in 2012.

The findings come after this month’s SMSF Association 2022 national conference, where CEO John Maroney urged trustees to be cautious of technology changes in the sector.

Speaking at the event, Mr Maroney said that technology advances will benefit the sector, however, they “will be evolutionary, not revolutionary” and that “any change must benefit the SMSF trustee”.

“The building blocks for a strong integration between technological change – I include Artificial Intelligence (AI) in this – the advice community and trustees are in place, and now we must focus on maximising the benefits for both the industry and trustees,” he said.

 

 

Neil Griffiths
29 April 2022
smsfadviser.com

  • Super, Death, and taxes

    An interesting finding in the federal government's Retirement Income Review report is that many Australians are dying with the majority of the wealth they had when they retired.

  • ATO responds to GST case involving SMSF

    The ATO has issued a decision impact statement on a recent decision that determined whether an SMSF was liable for GST on the sale of subdivided lots.

  • ATO statistics show 12 per cent jump in SMSF assets

    The total value of SMSF assets has climbed to $892 billion during the 12 months to March, according to the latest ATO statistics.

  • Census 2021 Data

    Search through the data collected by the Australian Bureau of Statistics, and find interesting facts about how the country is changing.

Read more latest Financial Planning news articles

General Advice Warning

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Retirewell Financial Planning nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.