Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Retirement

SMSFs drawn to global equities

By Staff Reporter · January 23 2014
Reading:
egg
egg
egg

Retirement

SMSFs drawn to global equities

By Staff Reporter
January 23 2014
Reading:
egg
egg
egg

SMSFs drawn to global equities

author image
By Staff Reporter · January 23 2014
Reading:
egg
egg
egg

SMSF investors have been told to consider the benefits exposure to international equities through funds that offer lower volatility and higher income can offer their portfolios against a backdrop of lacklustre Aussie equity yields.

 

The Grant Samuel Epoch Global Equity Shareholder Yield Funds offer a globally-diversified equity portfolio of listed global companies, which has attracted a number of SMSF investors.

Speaking to nestegg.com.au’s sister publication SMSF Adviser, GSFM chief executive Andrew McKinnon said about 20 per cent of the funds' net cash flows are from SMSF investors

“The funds are attractive because they offer lower volatility than most equity products and distribute high levels of income,” Mr McKinnon said.

Advertisement
Advertisement

“This has proven to be of great interest to SMSF investors who desire capital growth with substantial income as an investment objective.”

While SMSF investors retain a strong holding of Australian equities, property and cash, Mr McKinnon said the funds' global exposure and high income make it particularly attractive to trustees reaching retirement.

“The income yield on this strategy is still over 4 per cent,” he said, “but it’s based on free cash flow, rather than just targeting high dividend paying companies, which is a point of difference. We see it as more sustainable income.”

Last year, the fund achieved a 45 per cent return, Mr McKinnon said, noting the 48 per cent performance of the MSCI Global Equities Index by comparison.

“Under the circumstances of the type of strategy that’s focused on income and what we call shareholder yield, I think we were quite comfortable with that sort of return,” he said.

SMSFs drawn to global equities
default
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

LATEST POLL

Are you seeking alternatives to equity and property in the next 12 months?

Yes - 44.4%
No - 55.6%

Total votes: 473
The voting for this poll has ended

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.