SMSF collapses imminent in hunt for yieldBY ALICE URIBE | THURSDAY, 11 SEP 2014 12:40PMA chase for yield, combined with investor empowerment and lack of education could be the perfect storm for a large scale self-managed superannuation fund (SMSF) collapse, according to Aberdeen Asset Management (Aberdeen). Related News |
Editor's Choice
Australian dividend distributions rebound in Q3
|Australia saw a significant rebound in dividend distributions in the quarter to September 30, with the recovery attributable to BHP and the broader mining sector.
Aequitas hires from Vanguard again
|Aequitas Investment Partners has named a head of asset consulting, joining from Vanguard Australia.
RBA delivers another hike in split decision
|The Reserve Bank of Australia delivered its fifth interest rate hike this year, but the monetary board was split in its decision.
Sequoia profits tank as advisers flee
|Sequoia's Q1 revenue dropped close to 60% while also recording a profit loss. Despite this former chief executive Garry Crole took home more than $400k.
Further Reading
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Jacqueline Fernley
CHIEF EXECUTIVE OFFICER
ARC POINT OCIO PTY LTD
ARC POINT OCIO PTY LTD
Jacqueline Fernley is a self-confessed nerd, a market animal and as of this year, her own boss. Riddhima Talwani writes.
The Financial Standard podcast Tune in each week as we discuss the latest developments in Australia's wealth management industry. |  |
What a pity the poor non-aligned financial adviser is almost extinct. Thank you regulators, thank you financial journalists, thank you PI insurers, thank you all you pressure groups who don't understand the need that the ordinary Australian has for good advice, and what's more important, where they can get it!
Investors have largely overestimated their own investment capabilities and have decided to "go it themselves because they can do better than the full time professionals" so they set up a SMSF.
When they've made poor investment choices, chasing attractive above market returns, we've seen it all over the TV as they look to blame others for their poor investment decisions. The sad thing is that it will now be their lifetime superannuation savings that are now at risk of their overinflated egos suggesting they can do it better than the professionals.
There will be a steady stream of whinging SMSF members looking for someone to blame...all over again....well, the TV stations won't be struggling for stories...!!
Sub optimal asset allocation is not limited to SMSFs. With the array of investment options available within the public offer superannuation sector, members who make their own investment decisions, in the absence of quality advice, are equally exposed to under-performance and potential negative returns. The potential for members to lose their retirement savings through poor investment decisions is not the exclusive domain of the SMSF sector. Many (most) members need to accept that they are not skilled investment gurus and should be willing to take the counsel of a professional and skilled financial adviser. This applies to members of both SMSF and public offer funds.