Why did you start it up your SMSF?

I was in a company superannuation fund. I decided to take advantage of the choice-of-fund legislation (which came into effect in 2005) and do-it-myself, so I transferred out of the corporation fund and into my self-managed superannuation fund, which I set up with my wife. SMSFs offer many tax advantages and offered flexibility in transition-to-retirement strategies which suited me at the time.

How big is the fund?

It is $3 million.

Is it more or less difficult to manage than you thought it would be?

I used to manage the fund myself but now I have an accountant that takes care of all the compliance issues rather than providing just the audit function. I do enjoy managing the fund as it gives me the satisfaction that I am doing it myself and I am responsible for my own financial security.

Are you pleased with its performance?

I think I made the right call back in 2008 when I went to cash because I predicted a sort of market correction. That decision has helped the performance of the fund over the past few years.

Can you give us some numbers around the performance of the fund?

Over the past five years, the fund has delivered a 5.6% return.

What is your asset allocation?

I have 75% in domestic equity, of that 18% is in listed property, 2.8% in international equity (unhedged) and 24% in cash.

Do you have plans to change that asset allocation?

I am thinking of increasing my international exposure when the time is right particularly to Europe and the United States but the currency and valuations have to be right. Valuations in the United States are quite high and the Australian dollar needs to fall further.

What are your favourite investments and why?

I really like the big four banks, they have certainly provided some good returns over the years. I also like businesses like Sydney Airport because it is essentially a monopoly and companies like that are positioned very well to offer sustainable returns. I will definitely be watching BHP Billiton given that it is very cheap at the moment.

As a direct investor and chair of the Australian Shareholders’ Association (New South Wales), I have a good insight into the companies I am looking to potentially invest with and to possibly sell!

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.