Automated advice firm Six Park has launched a robo-advice solution combined with SMSF administration, designed with smaller-balance funds in mind as a result of the high costs and poor investment diversification in the sector.
According to Six Park chief executive Patrick Garrett, recent advances in technology and automation have made it possible for some SMSFs with balances as low as $100,000 to be cost effective and well diversified.
“A serious problem in the SMSF market, particularly for smaller accounts, is poor investment diversification,” Garrett said today.
“Six Park providers a simple way to get professionally managed, smart diversification at a low cost, guided by experts who have helped manage investments for the country.
“We find it frustrating when we read blanket statements that SMSFs need to be anywhere from $200,000 to $2 million just to be cost effective and properly diversified. That’s just wrong.”
He said technology had disrupted both the administration and investment markets.
“So investors should know that if they have decided to set up an SMSF, the balance required for a viable SMSF is probably lower than they think,” he noted.
Launched last year, Six Park revealed more than 30 per cent of its clients were SMSFs.
“Many people call robo-advice the democratisation of investing,” Garrett noted.
“This new service helps to democratise the SMSF market by enabling trustees to get established cost effectively and to have the choice to invest some or all of their assets with Six Park.
“Until now, most robo-advisers have focused on the millennial market where there is great potential for growth, however, we see an even more pressing need to help fix some of the problems in the SMSF space, especially smaller accounts.”
