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Advisers contemplate portfolios outside super

The incoming super changes are driving some advisers to consider replicating their clients’ SMSF portfolios outside of the super environment, according to State Street Global Advisors (SSGA).

“Our intermediary channel has some pain points in how they’re looking to manage client portfolios at the moment,” SSGA head of SPDR exchange-traded funds (ETF) Shaun Parkin revealed during the first monthly SPDR Bites briefing for 2017.

“The number one area that everyone’s looking at, of course, is the changes to the regulations for SMSFs and the ability to hold a certain level of assets within them.”

Following the SMSF Association 2017 National Conference in Melbourne last month, adviser feedback to SSGA revealed the super changes were driving advisers to consider their clients’ portfolio positions from the view of what that looked like inside of superannuation and also outside of super.

“With SMSFs being one of the largest ETF users in Australia, we’re starting to see how advisers are going to either replicate what their portfolios looks like inside an SMSF and a fair few are going to look at how to replicate it outside of super,” Parkin said.

“That was one of the key points that came out of our interactions, which is how are we going to look at money outside of super and are we going to look at it the same way we currently are looking at it?

“How exchange-traded funds fit into that is part of the same thematic that we’ve always talked about: income and consistency of distribution, and the effect of the drawdowns on SMSF portfolios.”

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