SMSF trustees are showing a strong appetite for direct property education and information about tax outcomes, portfolio construction and benefits, according to Charter Hall.
“What they like about property, particularly commercial property, is the control over it and the diversification that it brings to their portfolio,” Charter Hall Direct Property fund manager Steven Bennett told selfmanagedsuper.
“One of the key things we do with our SMSF trustees, because of their thirst for knowledge, is run regular investor seminars and briefings, and also provide that education piece to give them something extra.
“At the moment we’re getting 60 to 70 per cent of our inflows coming from SMSFs.”
SMSF trustees were showing specific interest in understanding commercial property benefits, including tax outcomes, Bennett said.
“So they’re looking at the tax-deferred side of commercial property investments,” he said.
“But they also want to know how direct property fits within a portfolio.
“We recognise that it’s not an asset class that’s going to represent 100 per cent of investors, but they’re very keen to understand how direct property isn’t highly correlated with other key sectors, and so by bringing it in, it drops the overall risk of the portfolio.”
He said Charter Hall was also focused on simplifying property jargon and distilling acronyms to make for an easier education journey.
Last month, Charter Hall was awarded the CoreData SMSF Service Provider Award for commercial property in the SMSF member category. The annual awards were run in partnership with selfmanagedsuper.
“The strategy for our team is to continue to replicate [our success] with the three products we have at the moment across the office, industrial and retail sectors,” Bennett said.
“Trustees like to be able to choose exactly what sector [they want] so by having [these three options available] at all times, we’re meeting their investment needs.
“At the end of Q4 last year, we surveyed 500 of our own investors and the feedback’s been excellent, but you do pick up things like [improving] the direct engagement piece and providing more education, which we will continue to offer.
He said SMSFs were using Charter Hall’s funds to supplement their income as they moved toward retirement.