While the use of generalist financial advisers by self-managed super funds (SMSFs) is falling overall, planners who specialise in SMSF advice are growing their funds under advice (FUA).
The joint Investment Trends-Vanguard SMSF planner report, published today, shows that average FUA from SMSFs fell from 23 per cent one year ago to 19 per cent now for SMSF generalist planners, whereas specialist advisers' FUA from SMSFs grew from 46 per cent to 50 per cent.
Investment Trends defined SMSF generalist advisers as those with one to 20 SMSF clients, and SMSF specialists as those with more than 20 SMSF clients.
Those SMSF specialists expected that amount to grow to 61 per cent of FUA by 2015.
The survey of 589 planners showed "unmet needs in areas such as protecting assets against market falls, investment strategy and income generation," Vanguard head of intermediary distribution Michael Lovett said.
The survey showed that SMSF trustees wanted modular service from their advisers and they were prepared to pay up to $2,000 more for additional service.
Barriers to growth were identified by planners, and these included administration, compliance, and "the grey areas that exist between planners and accountants of SMSF investors", Lovett said.
"The recent FOFA announcement of changes to the exemption on limited advice and SMSF-specific trustee duties may service to provide more clarity for planners and accountants in this sector," he said.
More than half or 54 per cent of SMSFs told advisers that they had additional advice needs.
The largest additional need was for asset protection against market falls (19 per cent, up from 10.5 per cent the previous year).
The next most important need was buying distressed assets (12 per cent - with no previous corresponding figure as this was a new option in the survey).
Planners had responded to cost pressures, cutting annual SMSF fees by 5 per cent to an average fee of $3,800 for work to May this year (compared with $4,000 to May 2011). This was down from the high of $4,500 in June 2008.
