Check the ‘pulse’ of your SMSF portfolio
A new asset allocation comparative tool, SMSF Pulse is now available
This week signifies the launch of SMSF Pulse – an exciting new online tool which enables SMSFs to benchmark their asset allocation mix against peers and industry experts.
Tim Keegan, Head of Self Directed Wealth and SMSF at AMP Capital says: “Getting asset allocation right is a fundamental part of building and managing an SMSF portfolio. That’s why, we’ve spent the past six months developing an illustrative tool that will help take some of the guesswork out for SMSFs when it comes to asset allocation and deciding on an optimal mix. We’re really proud of the tool and encourage SMSFs to access the comparative data and insights now available through the SMSF Pulse page.”
Asset allocation is the key driver of portfolio returns
While a variety of things will contribute to the performance of a portfolio, numerous studies have shown that asset allocation is the key driver of an investor’s return. Different asset classes will outperform, or underperform, during different periods of time. The objective is not to pick the winner each year, but to diversify sufficiently as to benefit from each asset class’ winning year, and not be too exposed to their bad years.
Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital suggests: "The risk-return trade-off is at the heart of asset allocation. Each asset class has a different level of return and risk and each behaves differently over time."
Check your SMSF Pulse and send us your feedback
SMSF Pulse is now available on the AMP Capital SMSF platform.
Once you’ve accessed the tool, don’t forget to send us any feedback and contribute to the ‘SMSF Pulse’ discussion on the SMSF community page.
About ‘SMSF Pulse’
SMSF Pulse is an illustrative tool designed to provide a comparison of an SMSF portfolio’s asset allocation against the asset allocation of similar SMSF investors; and the AMP Capital Investment Strategy and Economics team’s Dynamic Portfolio. How it works: Using information such as age, gender and state of residence, as well as the size and asset allocation of an SMSF portfolio, SMSF Pulse provides a comparison between an SMSF investor’s asset allocation and that of other SMSFs (of a similar size, same geographical region or of a similar age). SMSFs can also access a comparison between their portfolio asset allocation and the AMP Capital Investment Strategy and Economic team’s Dynamic Portfolio, managed by Dr Shane Oliver and Nader Naeimi. The asset allocation data for SMSF investors is sourced from Multiport, a leading provider of SMSF administration services wholly owned by AMP. Multiport periodically analyses the asset allocation of more than 2,500 SMSF portfolios. This data was provided to AMP Capital, along with information about the total portfolio value for each portfolio, and the age and state of residence of the members. Information about the AMP Capital Dynamic Portfolio is provided by the AMP Capital Investment Strategy and Economics team and is updated regularly.