NEWS – Self-Managed Super (SMSF) and Investment Opportunities in Alternative Asset Classes


NEWS – Self-Managed Super (SMSF) and Investment Opportunities in Alternative Asset Classes

NEWS – Self-Managed Super (SMSF) and Investment Opportunities in Alternative Asset Classes

Alexander McNab of SMSF Adviser writes about the investment opportunities in alternative asset classes for Self-manages super funds (SMSF):

“…Most self-managed super funds have historically had almost no allocation to alternative asset classes, largely because of a lack of knowledge, understanding and access. Alternative asset classes include private equity and venture capital, hedge funds, private real estate and ‘real assets’ like infrastructure, timberland or farmland. The common thread among these asset classes is a risk, return, liquidity and correlation profile different from the traditional asset classes of equities and fixed income.

Institutional investors overseas have long recognised the benefit of substantial allocations to alternative asset classes. According to Russell Investments, international institutional investors allocate 22.4 per cent of their portfolios to alternative asset classes and some very successful investors, like the Harvard Endowment Fund, allocate 60 per cent or more of their portfolios to alternatives. The Future Fund, an early leader in the Australian market, allocates 36 per cent of its portfolio to alternatives.

These investors allocate so meaningfully to alternatives for a number of reasons. Alternatives are typically uncorrelated with equity markets, providing genuine diversification benefits. Alternative asset managers often invest in relatively illiquid markets where assets are more frequently mispriced, creating the potential for strong managers to generate sustained outperformance. Finally, alternative asset managers have a much more strongly aligned fee structure, concentrated on performance fees that reward absolute performance, not performance relative to a benchmark…”

If you are an SMSF owner – what alternative asset classes have you invested in and considered? My wife and I are invested in a private magazine publisher and are learning about alternative investments, not with an eye for diversification only, but for alternative opportunity with a manageable risk and good potential return.

What is YOUR story? Share some here in the comments.

Got questions? If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and also download your FREE Expert Guide – Self-Managed Super and You Top right hand side above.

If you have any questions, why not give us a call – it’s FREE also! No obligation. 0407 361 596, Paul.

And book for our next  FREE Seminar – Self Managed Super Fund Roadmap – all you need to know plus bonuses see HERE and our SMSF and Property Boost to Super (combined) Free Seminar HERE


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in 2 Past Newsletter Topics, Retirement Planning, SMSF Info, News & Stats, Superannuation General and tagged , , . Bookmark the permalink.

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