Self-managed superannuation fund (SMSF) investors are rethinking their long-term growth strategies after having lost a large pool of retirement funds in the market downturn, according to Maven Financial managing director David Harvie.
SMSF investors in their 40s and 50s have seen how quickly their wealth can disappear and are now very gun-shy about higher risk investment strategies, he said.
“Following heavy market losses, super is at the top of people’s minds and they are looking for alternatives with more secure growth options,” he said.
“There is still an appetite for gearing through superannuation as people recognise the merits of this as an investment strategy, but reputable brands are very important.”
Investors that have been burnt by the sharemarket are now flocking back to quality and only want to invest with companies they trust, Harvie said.
“Quantum Portfolio uses a warrant structure with a non-recourse loan, so if the investment goes pear shaped the investor has the ability to walk away without further obligation,” he said.
“Unlike traditional warrants, Quantum Portfolio is lower in cost and more tax effective as a simple investment without the complexities of embedded derivatives.”
Quantum Warrants national sales manager Michael Kolikias said the reduction in the voluntary contributions cap provides another strong case for using gearing through superannuation.
“DIY super funds are making the most of the higher voluntary contributions ahead of the 30 June cut off, when the cap will be halved for people over 50 years to $50,000 and people under 50 years to a $25,000 limit,” he said.
