SelfWealth is now trusted with over 240 million dollars of SMSF assets and has reported that their SMSF index (SMSF200) has outperformed the ASX200 by over 8% in the past 12 months. SelfWealth Founder and Managing Director, Andrew Ward said “While our flat fee brokerage solution is what is drawing SMSF Trustees and their Accountants to SelfWealth, the power is in the data and analytics we can provide them”.
According to SelfWealth, on the whole, their indexes are significantly out-performing. The SW40 and SW30 portfolios annualised performance during the 2015-16 financial year found the SW40 equally-weighted portfolio, rebalanced quarterly, returned 9.05%, against the ASX200’s 3.09%. The SW30 equally-weighted portfolio, also rebalanced quarterly, returned 6.01%.
“What these results tell us and our members is that, together this information suggests the optimal number of stocks for a portfolio should be 30, but no more than 40. It is this rich data that our SMSF members are benefiting from, of our top 20 performers within the SelfWealth community, 70% of them are SMSFs” said Ward.
SelfWealth has seen a significant increase in memberships in the SMSF space since the launch of their new user interface and trading solution, which allows members to trade the ASX for a flat of 9.50 per trade regardless of trade size.
Ward attributes the growth in the SMSF space to mistrust in the financial services sector and Trustees paying for advice they no longer value. There is a real lack of transparency for SMSF Trustees, how does a Trustee compare their portfolio to someone in exactly the same financial position as them? How do they know their annual return is good? Our members can now find this out with ease, said Ward.