Hello! SMSF investing enquiry and media request

Hello!

Hope everyone's well -- I'm hoping posting this is permitted (admins, please let me know if there are any issues/if post needs to be moved or modified). My name is Ruth and I'm a journalist with Bloomberg News in Singapore.

I'm working on a news story about how SMSF investors have navigated investing amid the pandemic. As most are aware, it's been a bit of a rollercoaster ride with markets since last March -- bond yields are still hovering at ultra-low levels, and stocks have become very expensive.

I'm keen to speak with SMSF investors (accumulators, retirees) about their experience, and whether they've had to tweak their strategies to make their investments work for them in today's market. If you're open to have this chat and be featured in a news article, could you please get in touch with me?

Many thanks for reading, everyone!

Best wishes,
Ruth

 

No, didnt alter strategy I invest with a 5 year time frame in mind if great companies drop in that time it gives opportunity. I just got my SMSF report from my account today. Netted 18% in the FY to June 2020. and had 30% gain since. Reduced some overweight position by up to 18% as per normal between August 2020 and Dec 2020 and redirected funds into up coming growth stocks and Lakehouse Capital managed Funds. My accountant told me 10 - 11%% returns was common for his better performing clients. The ones using financial advisors performed poorly. He said said they took a clip just for telling clients to put funds in mediocre ETF's. One Client paid a financial advisor $18k and only made $11k themself.

 

Thank you for the comprehensive response, Ruby! I'll drop you a private message as well. Cheers.

 

No did not alter the strategy as we have 100% control over investments and mainly in RE, and since RE in Australia has been actually going up we have made a much better return on paper as anticipated > 12%, however still in accumulation phase.
Perhaps having investments outside of SMSF made that decision simple?
Also, rents yields have been increasing too (obviously in fragmented parts in Australia not everywhere, some even by 20%).

 

Thats a broad generalisation. Anyone who was exposed to market risk at March likely experienced losses either real (selling) or unrealised (holding). By June this had partly recovered and typical ASX recovery saw modest annual returns (low single digits) with substantial recovery in the period July to December 2020 as major returns. In some sectors incl retail, banking etc Looking at returns in such cases through the limited "financial year" is myopic especially as it aligns with an aweful final quarter. But it want the end of the story. Many financial advisers suggested selling down poor risks (Qantas, Flight Centre etc) and holding those expected to recover. Selling down to cash etc is where the true losses occurred. Delaying re-entry to markets also contributed to maintaining any loss. Neither were typical advice of advisers. Some of those mediocre ETFs at 30 June included VAS. Down 45%. If held it recovered up 25% within 3 months to Sept20 and recovered entirely with a 47% gain in the year to 31 March 2021. VAS is typical of many ASX shares as it is a composite ETF of Australian shares.

I have seen many DIY investors in SMSF sell in march and not buy back in until december 2020+. They locked in their losses. They missed much growth. eg Buying back VAS in december

The thing with smsfs is
1. Strategy
2. Uniqueness
3. Bespoke timing (right or wrong)

Those who used and maintained strategy have been less impacted v those who reacted and went to cash and were afraid to leave cash.

 

Some followed this path:





Others followed this path:



Those who followed the second path are doing OK I reckon.

 

Spot on, didn't touch or panic at all regardless of asset class.

 

Never fear. Come the next event many will. Happens all the time. Rinse and repeat.

Apart from my investing motto being It's All About Me, there is a small clue in the avatar. Hard to see but on the coffee cup (my favourite beverage in case people don't know) two words are inscribed on it.

To save you going blind trying to decipher it, they are "Don't Panic."