The research, conducted in conjunction with the Australian Tax Office (ATO) and the industry body, Self-Managed Super Fund Professionals' Association of Australia (SPAA), also found that advisors often focused on compliance issues, rather than developing a strategy to grow wealth, in Australia's fastest growing segment of the $500B super industry.
ASX commissioned the first qualitative research into SMSF trustees and advisers in order to understand why and how investors were using SMSFs.
ASX found that trustees were characterised by a strong need to have control and responsibility for their own financial affairs and well-being. They also had an interest in learning about investing and tracking their investments. However, they tended to stay with investments they understood and believed they had a lot to learn about investing. Many also stated that they would prefer to make their own mistakes, 'than pay someone else to do it for them'.
The research found that most trustees held their funds in direct shares and cash, followed by property and managed funds.
Richard Humphry, Managing Director and CEO ASX Ltd, said: "The self-managed superfund industry is the fastest growing sector of Australia's superannuation industry. Given that direct shares is one of the most popular investment choices by self-managed superfund trustees, ASX believes it is imperative we understand the drivers behind the choice to go self-managed, and more importantly, to understand the needs of the trustees to manage and grow their investments. This research is a positive step towards gaining a better insight into the industry so we can better service their investment and education needs"
ASX commissioned Creative Catalyst Insights to conduct the research. The study consisted of 8 focus groups among SMSF members/trustees in Sydney, Brisbane and Gold Coast covering a mix of occupations/professions (including self-employed/business owners), ages and gender, and 8 opinion leaders in-depth interviews among association representatives, financial planners and accountants.
The research was funded by FIDA, the Financial Industry Development Account of the ASX National Guarantee Fund.
ASX has recently launched a Self Managed Super Fund web page www.asx.com.au/smsf, which covers what to look for from an adviser, advice on setting investment strategies and other useful information. This complements ASX's extensive range of educational classes which help investors understand the elements of building a successful investment strategy.
ASX has also launched the Listed Product Accreditation Course (LPAC) for Financial Planners. LPAC is a case study based program of distance learning providing a flexible and cost effective way to develop the skill to use ASX listed products in clients' portfolios, safely and profitably.
Click here for selected quotes from self managed super fund research respondents.
