Advising Self-Managed Superannuation Funds

An SMSF can offer greater control over investment decisions, lower costs and a wider range of investment opportunities than a public offer superannuation fund. For families with substantial superannuation balances, that control is often the difference between a portfolio that reflects their broader financial position and one that sits apart from it.

It also carries obligations. Trustees are personally responsible for the fund's compliance with superannuation law, for formulating and documenting an investment strategy, and for the fund's administration. Those responsibilities do not diminish as a fund grows — in most cases they become more complex.

How we advise SMSF trustees

We draw upon our experience and specialised qualifications in providing expert advice to SMSF trustees on:

• establishing the SMSF strategic asset allocation to achieve long term investment gains

• diversifying the SMSF portfolio to achieve your risk return objectives

• monitoring portfolio performance and investment strategy

• portfolio changes or adjustments to maintain performance or respond to changes in strategy

• appropriate and economic life insurance for members, as required.

Strategic asset allocation

Asset allocation is the primary driver of long-term return in most portfolios. We work with trustees to establish an allocation appropriate to the fund's members, their stage — accumulation, transition to retirement, or pension — and their tolerance for volatility. This is documented and revisited as circumstances change rather than set once and left.

Diversification and portfolio construction

Because we are not owned by a bank or financial institution, our recommendations are not constrained by an approved product list. An SMSF portfolio we advise on can hold Australian and international equities, fixed interest, unlisted property, and alternative assets — selected on their merits rather than their availability. Our advice is supported by in-house research, an investment committee, and external research and economists.

Monitoring and adjustment

Markets move, superannuation law changes, and members' circumstances shift. We monitor portfolio performance against the fund's stated strategy and recommend adjustments where the two have diverged. Each of our advisers maintains a deliberately limited number of client relationships so that review is substantive rather than nominal.

Insurance within the fund

Life insurance held inside superannuation can be an efficient structure for members, but appropriateness depends on the fund, the members and their circumstances outside it. We advise on cover that is both appropriate and economic, and review it as members' positions change.

Working alongside your existing advisers

An SMSF rarely exists in isolation. Our consultative process considers the fund alongside family trusts, company structures, personal holdings and estate planning intentions — including assets we do not advise on — so that the fund's strategy reflects your overall position.

We work alongside your accountants and lawyers rather than in place of them, and are comfortable coordinating with existing professional relationships.

Note that Garnaut Private Wealth does not give advice to clients looking to establish a self-managed superannuation fund. We do have a referral service to qualified and experienced accountants and lawyers who can advise on the legal and accounting aspects of the SMSF. This includes the suitability of an SMSF, the costs and administrative effort involved, the responsibilities of SMSF trustees and the annual cycle of returns to the ATO and other compliance procedures.

Specialist accreditation

Three of our advisers hold SMSF Specialist Advisor™ accreditation from the SMSF Association — a designation requiring demonstrated technical competence in superannuation law, taxation and fund administration, and ongoing professional development to maintain.

Combined with the firm's experience advising trustees since 2001, that accreditation means SMSF advice at Garnaut Private Wealth is delivered by advisers who specialise in it rather than treat it as an adjunct to general financial planning.

Who we advise

Garnaut Private Wealth advises wholesale and sophisticated investors as defined in the Corporations Act 2001. Our SMSF clients are typically families, business owners, professionals and senior executives with substantial superannuation balances and correspondingly complex circumstances.