My SMSF – Peter Burgess

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Name: Peter Burgess
Other members of the SMSF: My wife

How long have you had your SMSF?

My wife and I established a small APRA fund (SAF) in 2005 and we are currently in the process of converting the fund to an SMSF and appointing Cavendish as the administration manager.

Why did you start it up?

We wanted to invest in a broader range of listed and unlisted investments including some smaller cap stocks, which are not typically available in other funds. We also wanted to feel more in touch with our super and be able to engage directly with our investment adviser. We opted for a SAF as we were time poor but wanted a structure that could provide SMSF-like features without the need to take on the role of a super fund trustee.

For cost reasons, as well as now having more time on our hands to manage the fund, we are now converting our fund to an SMSF.

How big is it?

Around $300,000

Is it more or less difficult to manage than you thought it would be?

I would say less difficult.

Do you enjoy managing it?

Yes, we enjoy being able to engage directly with our investment adviser. We also enjoy the investment transparency of having our own fund. We know exactly where our super is invested at all times.

Are you pleased with its performance?

Overall, yes. Given our growth investment strategy, and our relative over exposure to speculative stocks, our fund performed poorly during the GFC but has recovered reasonably well over the past few years.

Can you give us some numbers around performance over the last one, three and five years?

It has pretty much been in line with the performance of the All Ords index over those periods.

What is your asset allocation?

Currently, around 60% of our fund is invested in listed Australian equities, 10% in international shares, 30% in cash and fixed income.

What investments do you have outside of superannuation?

A few investment properties.

Do you use an advisor or any kind of service provider?

Investment adviser/stockbroker.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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