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Financial Happenings Blog
Monday, October 29 2012
I read with interest a Sydney Morning Herald article that looked at a range of investors who had chosen to go down the DIY Self Managed Superannuation path – Master of Your Own Destiny.

One participant to the article suggested they had $7.6 million in their fund and were paying fees of approximately $100,000 per annum.

So I decided to look at what the fees would look like in 2 superannuation accounts of $3.8 million each using the cheapest available administration service I have at my disposal for that amount. 

The following table sets out the total fees for the combined $7.6 million portfolio across a range of asset allocations:


60 / 40

50 / 50

40 / 60

30 70

Administration Service





Investment Managers















These numbers are based on using the standard investment philosophy suggested by the firm.  If a client wanted to through in a direct shareholding component to the portfolio the investment manager costs would fall further.

Keep in mind that the members no longer have the responsibility of being trustees of their own fund plus they have shaved off more than $65,000 from their cost base. 

I think this shows that the cost basis of A Clear Direction’s approach is extremely competitive for large portfolios and also puts into question the oft quoted perception of lower fees in SMSFs.

If you think you are paying too much please get in contact.


Posted by: Scott Keefer AT 12:15 am   |  Permalink   |  Email
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