Portfolios reviewed more often

Investment strategy SMSF

An increasing number of SMSF trustees have been found to be reviewing their fund’s investment strategy on a more frequent basis.

The latest CoreData research performed on the SMSF sector has shown trustees undertook more frequent reviews of their fund’s investment strategy in 2022.

The study showed 34 per cent of trustees reviewed the investment strategy in place at least once a month if not more often. This represented a significant increase from 2021 when 24 per cent of respondents indicated they had followed this practice.

According to the survey, the majority of trustees switched from reassessing their SMSF investment strategy on a half-yearly basis in 2021 to conducting monthly reviews in 2022. To this end, 32 per cent of individuals running their own super fund revisited their investment strategy every six months in 2021, whereas in 2022 the proportion of trustees doing so had dropped to 24 per cent.

Fewer SMSF trustees were also found to be re-examining their investment plans annually, with 11 per cent following this practice in 2022 versus 16 per cent in 2021.

CoreData senior executive Grahame Evans noted this change in behaviour is in keeping with a key characteristic of individuals who establish and run their own superannuation funds.

“[Trustees reviewing their] investment strategies on a regular basis … goes hand-in-hand with [them wanting control over their retirement savings] and also goes hand-in-hand with the need for them to understand what is actually going on [with the fund],” Evans said.

With regard to making amendments to their asset allocations over the next 12 months, 38 per cent of trustees surveyed indicated they would not be making any changes. Advisers who participated in the study were even more adamant they would not be recommending a significant change to SMSF portfolio holdings, with 52 per cent supporting this view.

“[The difference in the results] I think [shows] accountants and advisers have more of a longer-term view in this area,” Evans noted.

The research findings were based on an online survey conducted between 26 July and 5 September 2022 that collated responses from 925 SMSF trustees and 240 financial advisers.

The same report also revealed trustees receive investment market information significantly after individuals working in the financial advisory sector.

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