More platform inflows through SMSFs
Thursday, 14 October 2010 12:40pm

Research from Investment Trends shows more than 75 per cent of planners invest some portion of SMSF inflows through a platform - up from 65 per cent a year ago.

Planners also estimate that 43 per cent of their clients' total SMSF assets were invested through a platform, up slightly from 41 per cent June last year.

How much revenue platforms can gain from planners with SMSFs clients may be critical to the growth of their businesses, especially when direct shares have traditionally been the preferred method of investing in equity for SMSFs.

According to Investment Trends' latest SMSF Planner Report, SMSFs generate $890 million for the planning industry in the last year - up 19 per cent from $750 million last June.

Planners predict self-managed clients will make up 38 per cent of their revenue in three years - up from 27 per cent today.

"Our research shows a 10 per cent rebound in the number of SMSFs using planners during the last year," said Investment Trends analyst, Recep III Peker.

More than 230,000 SMSFs now receive advice from a planner, compared to 213,000 in June 2009, he said.

Broadly speaking, Peker said planners are now earning more than a quarter of their revenue from SMSFs.

But to fully cater for the sector, planners face several hurdles ahead.

At least two in five planners are concerned about accountants setting up SMSFs for clients who are not suitable and the same number worry about how to best explain trustee responsibilities.

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