The latest client analysis of newly created SMSF accounts by share trading platform Ausiex has shown trustees on the whole favoured receiving advice with regard to their equity transactions in 2022.
While the number of newly established SMSF accounts was down on that of previous years, the data revealed self-directed funds experienced the biggest reduction, recording a decrease of over 30 per cent.
“In contrast, advised SMSF accounts created in 2022 retreated to a lesser extent in the order of 9.2 per cent, suggesting that demand for advised SMSFs remained relatively resilient,” Ausiex observed.
When broken down into more specific demographic groups, in relation to new SMSF accounts established by members receiving investment advice, all cohorts reflected a reduction.
“Looking more closely at the factors driving the declines in advised SMSFs, of all generations, baby boomers, accounting for new advised accounts created, fell 6.56 per cent in terms of new advised SMSF accounts, while gen X accounts were down 7.27 per cent,” the sector service provider stated.
“In a reversal of the spike seen in 2020 during the pandemic, it was advised millennial SMSFs which reversed at a higher rate of 9.3 per cent by comparison.”
However, it noted the drop in trading accounts set up by all advised clients in 2022 was well below the fall for self-directed millennial SMSF investors, which was in excess of 30 per cent.
Despite the movement in newly created accounts across all age groups, the study indicated the lion’s share of this activity was represented by baby boomers.
Overall the data reflected consistent new account activity contributed by SMSF clients.
“The total number of SMSFs across both advised and self-directed segments were level year on year. Advised SMSFs in 2022 comprised approximately 61.83 per cent of all SMSF accounts, with self-directed accounts representing 32.41 per cent, reflecting no change from 2021,” Ausiex said.
