There’s a popular myth that individual investors, especially trustees of their own self-managed super funds (SMSFs), do not invest much in global equities. While it’s true SMSFs are less diversified than large institutional funds, global equities are readily available and eagerly sought by trustees and personal investors.
The myth is conveniently perpetuated by managers of global funds, who often claim the SMSF allocation is less than 1%. They argue investors should correct the asset allocation and lack of diversification by placing more money into their funds.
At a recent global fund launch, a high-profile manager even talked about how his product filled a ‘gap’ in the market. Let’s see if he was right.