SMSF Adviser’s Navigating Excellence Guide

NAVIGATING EXCELLENCE An insider’s guide to top service providers in the SMSF sector

Featuring SMSF Adviser’s/ 2023 Documentation Provider of income the Year, Audit Provider of the Year, Fixed Income Provider of Portfolio construction ETFS SMSF / Private markets / Retirement the Year, and Cash and Term Deposit Provider of the Year

Foreword

SMSF Adviser’s Navigating Excellence Guide 2024

NAVIGATING EXCELLENCE An insider’s guide to top service providers in the SMSF sector

Charbel Kadib SMSF Adviser reporter

BUILDING A retirement nest egg is a key priority for

Australians endeavouring to secure their financial future and build intergenerational wealth. The superannuation system is often viewed as the primary vehicle for achieving retirement objectives, with over $3.5 trillion invested in super funds.

While most super assets are managed by retail and industry funds, Australians are increasingly setting up SMSFs to seize control of their destiny. According to figures shared by APRA in September 2023, SMSFs managed just under $900 billion in assets or 25 per cent of total super assets. SMSFs offer greater flexibility to members, enabling trustees to ensure the fund reflects their bespoke needs.

However, managing an SMSF can be challenging, with trustees required to balance a raft of responsibilities and stay abreast of changes to the operating environment. In addition to generating returns for members, SMSF trustees are responsible for ensuring compliance with regulatory, taxation, and administrative obligations while also monitoring the macroeconomic environment and developments in the technology space.

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Given these challenges, it’s imperative for SMSF trustees to consult professional service providers with the expertise to unpack complexities.

Service providers include financial advisers, investment managers, accountants, legal professionals, and technology solutions providers.

SMSF Adviser’s Navigating Excellence Guide offers deep insight into the SMSF landscape and aims to equip trustees with the tools to identify the right professional services providers.

Specifically, this special guide includes: Key trends underpinning the SMSF landscape and the outlook for the burgeoning space.

Best practices and essential considerations when selecting a professional services provider.

Insights from some of Australia’s awardwinning SMSF service providers.

Together with partners Acis, Aquila Super, Franklin Templeton, and Macquarie, the team at SMSF Adviser hopes this special guide contributes to the growth and success of your SMSF.

Contents

SMSF Adviser’s Navigating Excellence Guide 2024

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CONTENTS 04

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Macquarie – SMSF Adviser’s 2023 Cash and Term Deposit Provider of the Year

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Snapshot: Surveying the SMSF landscape

Choosing an SMSF service provider

SMSF Awards winners and finalists

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Aquila Super – SMSF Adviser’s 2023 SMSF Audit Provider of the Year

Franklin Templeton – SMSF Adviser’s 2023 Fixed Income Provider of the Year

Acis – SMSF Adviser’s 2023 SMSF Documentation Provider of the Year

Snapshot

SURVEYING THE SMSF LANDSCAPE

The SMSF industry has grown exponentially over recent years as the benefits of private retirement planning become increasingly apparent to Australians. SMSFs provide members with greater control over their financial destiny, empowering trustees to make bespoke investment decisions that best reflect the needs of members

SMSF Adviser’s Navigating Excellence Guide 2024

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Snapshot

THE ATO reports that just under 612,000 SMSFs

operate in Australia, with a combined membership of approximately 1.14 million Australians.

The industry welcomed an additional 8,000 SMSFs over the September quarter of 2023 (latest available statistics) – the second largest period of growth in five years.

But where has this demand come from? What is the profile of the average SMSF and its members?

Approximately 93.1 per cent of SMSFs have less than two members, with no SMSFs recorded with more than six members.

Approximately 77.6 per cent of members are over the age of 50, with just 3 per cent below the age of 35.

NSW and Victoria dominate the SMSF industry, hosting over 62 per cent of the national market (just over 32 per cent and just over 30 per cent respectively).

Members aged over 60 represent 55 per cent of the SMSF population.

Just under 53 per cent of members are male.

SMSF Adviser’s Navigating Excellence Guide 2024

These SMSF members punch above their weight.

Despite totalling representing just over 6 per cent of total superannuation accounts in Australia, SMSF trustees collectively manage just under $900 billion in assets – approximately 25 per cent of total assets managed by super funds ($3.5 trillion).

The average SMSF trustee manages $1.5 million in member assets, with just over 58 per cent of funds managing less than $1 million in assets.

Approximately 5.5 per cent managing more than $5 million. Individual members hold an average of $780,000 in assets and collectively contribute $16.3 billion to their SMSF, while employer contributions total roughly $5.7 billion.

Importantly, SMSF trustees have consistently delivered positive returns to members over the past five years reported by the ATO. Over the last reported period (2020–21 financial year), total returns on assets (ROA) across the SMSF industry averaged 18.2, with a median ROA of 12 per cent.

But these gains don’t come easy. Managing an SMSF’s investment strategy can be extraordinarily complex, particularly in periods of heightened macroeconomic uncertainty.

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Snapshot

SMSF Adviser’s Navigating Excellence Guide 2024

TAXING UNREALISED CAPITAL GAINS IS A TAX ON MARKET MOVEMENTS AND CHANGES IN ASSET VALUES, NOT INCOME – AN ALARMING PRECEDENT AS IT REPRESENTS A FUNDAMENTAL CHANGE IN HOW TAX POLICY IS IMPLEMENTED IN AUSTRALIA. Peter Burgess, CEO of SMFA

Markets have been particularly volatile in recent years off the back of aggressive monetary policy tightening in response to sustained inflationary pressures. These conditions have complicated tasks for SMSF trustees, which have borne the burden of subdued member returns, particularly impacted by underperformance in the equities market.

According to ATO data, SMSFs invested just under $265 billion in listed securities in Australia and abroad as at the September quarter of 2023.

In comparison, over $165 billion was invested in listed and unlisted trusts, $146 billion held in cash and term deposits, approximately $136 billion in residential and non-real estate (Australia and overseas), almost $60 billion in limited resource borrowing arrangements (LRBAS), and just under $10 billion in debt securities.

Across all fund sizes, SMSFs allocate at least 20 per cent of their investment portfolio to Australian and global equities. SMSFs with assets totalling between $5 million and $10 million had the largest equities allocation (31.3 per cent), while SMSFs managing less than $50,000 had the smallest allocation (22 per cent).

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Equity market volatility is tipped to persist throughout 2024 as the economy digests over 400 bps in cumulative monetary policy tightening from the Reserve Bank of Australia (RBA).

Aggregate economic activity is expected to slow, with the RBA forecasting GDP growth of just 2 per cent in 2024. But market instability is just one of several challenges complicating the management of an SMSF. The industry is subject to an expanding and fast-changing regulatory regime, and keeping abreast of the nuances underpinning regulatory compliance is among the chief responsibilities of a trustee.

The mounting regulatory burden has been flagged by the SMSF Association (SMSFA), which continues to call for a cutting of red tape. For example, in its 2023–24 pre-budget submission to the Commonwealth government, the SMSFA called for the “simplification” of rules relating to the transfer balance cap (TBC) – particularly indexing of the unused portion of a member’s TBC. “This is causing significant complexity and is compounded by the lack of access for financial

Snapshot

SMSF Adviser’s Navigating Excellence Guide 2024

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advisers and SMSF administrators to the ATO reports needed to obtain an individual’s TBC,” the SMSFA warned.

trustees need to seek support from professional service providers, including:

Accordingly, the SMSFA has called on policymakers to apply a single cap, which it claims would minimise confusion and reduce costs for SMSF administrators.

Investment professionals

Other headwinds include the Commonwealth government’s proposal to double the concessional tax rate on earnings for super balances exceeding $3 million, from 15 per cent to 30 per cent.

The SMSFA is concerned this push would add to existing cost pressures and has hence urged legislators to reject the proposal.

“Taxing unrealised capital gains is a tax on market movements and changes in asset values, not income – an alarming precedent as it represents a fundamental change in how tax policy is implemented in Australia,” SMSFA CEO Peter Burgess wrote in a letter published in December 2023.

Given the growing complexities associated with establishing and running an SMSF,

Financial advisers banking services providers Accounting and audit services providers Legal practitioners With a raft of options in the marketplace, it’s critical for SMSF trustees to carefully assess the strengths and weaknesses of prospective candidates to ensure they select the right provider.

For the latest on SMSF news, visit SMSF Adviser

Choosing an SMSF service provider

CHOOSING AN SMSF SERVICE PROVIDER Knowing how to put together a team for your specific goals is never an easy task. Here, we explore different service providers and what they can do for your SMSF

SMSF Adviser’s Navigating Excellence Guide 2024

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Choosing an SMSF service provider

THE DEMANDS and responsibilities of managing

an SMSF can impose a heavy burden on trustees.

SMSF trustees are responsible for ensuring the fund remains compliant with ever-changing regulations and tax obligations in addition to their primary obligation to help deliver positive investment returns for members – itself a complicated task, particularly in periods of market volatility and macroeconomic uncertainty.

For this reason, trustees seek support from professional service providers, leveraging their expertise to navigate complexities.

Providers include: Financial advisers Investment product providers Banking services providers Accounting services Legal practitioners With each of these professional services sectors highly competitive, selecting the right provider can be challenging. However, some insights and considerations can guide trustees through the decision-making process.

SMSF Adviser’s Navigating Excellence Guide 2024

Financial advisers Professional financial advisers can be an invaluable asset for SMSF trustees, providing both bespoke investment guidance and holistic financial support.

Specifically, advisers can: Provide insight into the costs associated with setting up and managing an SMSF. Devise bespoke investment strategies that take the unique circumstances of members into consideration.

Flag financial risks and help develop solutions in complex scenarios.

Prepare members for different phases of the superannuation lifecycle, particularly the retirement phase.

However, given just under 16,000 licenced advisers operate in Australia, SMSF trustees need to carefully assess their options before establishing long-term ties with a financial adviser.

ASIC’s MoneySmart website lists some considerations for prospective financial advice clients, which include:

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1. What a client wants from a financial adviser: This involves considering the stage of your wealth journey, your financial position, and your overall objective.

2. The type of advice a client is seeking: Choosing between either general advice or personal advice (considers your financial situation, goals, and aims to serve your best interests). Personal advice can be simple (support for a single issue), comprehensive (development of a detailed financial plan), or ongoing (regular monitoring and reviewing of your financial situation).

3. Fee structure: Understanding how an adviser charges for their service and choosing a fee structure that best suits your interests.

Another important consideration is a financial adviser’s overall productive capacity. The financial advice industry continues to grapple with an onerous regulatory framework, which policymakers are in the process of reforming. As such, prospective advice clients need to assess whether a financial adviser has the time and resources to serve their best interests. This is critical for SMSF trustees who can themselves be time and resource-poor.

Choosing an SMSF service provider

THE ROLE OF QUALITY FINANCIAL ADVICE FROM A LICENSED PROFESSIONAL CANNOT BE OVERSTATED. TRUSTEES CAN GREATLY BENEFIT FROM PORTFOLIO CONSTRUCTION ADVICE OFFERED BY FINANCIAL ADVISERS, SERVING AS A VALUABLE INPUT TO THEIR DECISION-MAKING PROCESS. Franklin Templeton

SMSF Adviser’s Navigating Excellence Guide 2024

To improve efficiency, many advisers partner with tech solutions providers, which leverage the latest software innovations to simplify their compliance processes.

To find out whether a financial adviser meets these standards, SMSF trustees can simply ask prospects directly or consult their ‘Financial Services Guide’ – a document disclosing an adviser’s licensing status, services offerings, fee structure, ownership details, and links to product providers.

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Trustees should also consider an investment manager’s broader approach to fixed income investing, including its credit analysis and risk assessment posture, to ensure it aligns with the SMSF’s goals and risk appetite.

Franklin Templeton continues: “Additionally, factors like the credit quality of the fixed income securities, the duration of the investments, and how they fit into the overall portfolio strategy for diversification and risk management are crucial.

Investment product providers The vast investment landscape can be hard to navigate without the expertise of seasoned investment professionals, which can help SMSF trustees identify solutions for their long-term investment strategies, and most importantly, help achieve their performance objectives. Using the example of fixed income assets, global investment firm Franklin Templeton notes it’s essential for SMSF trustees to consider, among other things, the track record of an investment manager.

“This kind of comprehensive evaluation helps ensure that the chosen fixed income investments are aligned with the trustee’s objectives and the SMSF’s long-term financial plan.”

“Evaluating the manager’s history in terms of performance, stability, and response to market fluctuations can provide insights into their expertise and reliability,” the firm observes.

Financial advisers are also an important asset for trustees, providing investment insight that draws from years of industry experience. Advisers can also help monitor an SMSF’s investment

SMSF trustees can leverage online resources to compare investment options. Many of these platforms provide data on performance history, fees, and risk profiles. This includes analytics software designed to provide more in-depth analysis and portfolio simulation capabilities.

Choosing an SMSF service provider

SMSF Adviser’s Navigating Excellence Guide 2024

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performance, ensuring options continue to serve the interests of SMSF members. This involves tracking key performance metrics – returns, asset allocation, and adherence to the investment strategy.

“The role of quality financial advice from a licensed professional cannot be overstated.

Trustees can greatly benefit from portfolio construction advice offered by financial advisers, serving as a valuable input to their decisionmaking process,” Franklin Templeton notes.

“We regularly provide the financial adviser community with insights into our investment solutions and macroeconomic commentary, leveraging the depth of resources across our global platform.

“Such support enables financial advisers to offer informed, strategic advice to SMSF trustees, enhancing the overall quality and effectiveness of their investment strategies.”

Developing direct relationships with investment service providers is also critical. This may involve reading the firm’s regular performance updates, attending investor webinars, and

Choosing an SMSF service provider

staying connected through newsletters or market updates.

“This ongoing engagement ensures that the investments remain aligned with the trustees’ goals and facilitates quick adaptations to any necessary changes in their strategy,” Franklin Templeton says.

“In this way, a combination of personal diligence, expert financial advice, and continuous engagement with service providers can form the cornerstone of successful investment management for SMSF trustees.”

Banking service providers Establishing a banking relationship is fundamental to the running of an SMSF. Banking accounts facilitate transfers from super accounts and provide a safe harbour for member funds.

SMSF Adviser’s Navigating Excellence Guide 2024

Fee arrangements Accessibility and usability (apps, online features, tech solutions, and bank branches) Quick and efficient banking transfer capabilities Reputation and track record Macquarie’s Cash Management Account (CMA) has continued to prove popular among SMSF trustees, winning Cash & Term Deposit Provider of the Year at the SMSF Awards 2023.

According to Macquarie, close to one in three SMSF accounts house a Macquarie CMA. Olivia McArdle, head of payments and deposits at Macquarie Bank, says setting up a CMA account can be simple, saving SMSF account holders time and minimising complexities.

With an array of solutions on offer across Australia’s banking system, some key considerations can help trustees identify the right provider. These include:

“If we have all the right information, you can open a CMA for an SMSF in the same day, which is important when you’re coordinating trust deeds and ATO registration,” she says.

Security posture

“Macquarie’s CMA offers real-time banking and transfers and a competitive rate, as well as the

Interest rate offerings

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WITH AN IMPORTANT INVESTMENT LIKE YOUR SUPER, YOU WANT TO BE CONFIDENT YOUR SMSF CASH HUB IS SECURE, COMPETITIVE AND MAKES MANAGING YOUR FUND AS EASY AS POSSIBLE. Macquarie Bank

Choosing an SMSF service provider

SMSF Adviser’s Navigating Excellence Guide 2024

opportunity to attach an Accelerator account for a higher on-call cash rate.”

FAILURE TO RECEIVE PROPER AND APPROPRIATE ADVICE CAN RESULT IN EXPENSIVE MISTAKES OR LOST OPPORTUNITIES, WHICH MAY BE SIGNIFICANTLY MORE COSTLY THAN THE ACCOUNTING AND AUDITING FEES OR RESULT IN UNTIMELY DELAYS IN THE COMPLETION OF WORK. Aquila Super

Macquarie’s CMA account, Ms McArdle adds, also streamlines processes for SMSF advisers and accountants by offering market-leading connectivity, integration and reporting, as well as third-party authority.

“With an important investment like your super, you want to be confident your SMSF cash hub is secure, competitive and makes managing your fund as easy as possible,” she says.

To maximise account security, Macquarie also uses multi-factor authentication through its Macquarie Authenticator app to verify a user’s identity before granting access to banking services.

Accounting services Keeping up with changes to tax rules can be onerous and complex for SMSF trustees. But understanding changes to the tax system is critical and could be make or break for an SMSF. The ATO notes that an accountant can help set up a fund’s financial systems prepare the fund’s accounts and operating statements, while tax

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agents can complete and lodge annual returns, provide tax advice and represent an SMSF in dealings with the ATO. When selecting the right accounting service provider, SMSFs should consider: Qualifications Cost Reputation Availability and accessibility Specialisations Tech solutions SMSF auditing and administration services provider Aquila Super explains that while many SMSFs may base their decision purely on the cost, it’s important for trustees to consider the full suite of service offerings.

“Many SMSF trustees and firms might focus on the cost or fees quoted for attending to their accounting and audit work requirements. This is important, and Aquila always seeks to keep fees competitive,” Aquila Super says. “However, we also believe that potential clients should place equal weight on the SMSF-specific expertise

Choosing an SMSF service provider

SMSF Adviser’s Navigating Excellence Guide 2024

and experience of the accounting professionals providing the service and the IT and other systems in place.

client portal, providing an efficient mechanism for clients to liaise with us and vice versa.”

“Failure to receive proper and appropriate advice can result in expensive mistakes or lost opportunities, which may be significantly more costly than the accounting and auditing fees or result in untimely delays in the completion of work.”

Aquila Super goes on to highlight the importance of choosing a provider that leverages tech tools to streamline their service proposition and bolster operational efficiencies.

“An accounting firm’s use of technology provides a solid indication as to how serious they are about their SMSF offering and how invested they are in providing cutting-edge client service,” the firm explains.

A firm offering best practice services will typically employ specialist SMSF software and conduct digital communication through a secure online portal, typically customised specifically for SMSFs. “At Aquila Super, we have invested heavily in our

“Whilst the implementation and maintenance of such technology is typically an expensive and time-consuming exercise to implement, its presence results in faster communication between the client and firm and creates additional efficiencies for both parties.”

Legal practitioners Finally, SMSFs should consider enlisting the services of qualified legal practitioners, equipped to prepare SMSF documentation (i.e. trust deeds) and guide trustees through changes to legal obligations. While costly, legal advice can help reduce unnecessary costs associated with failures to meet regulatory or tax compliance obligations.

The usual considerations apply when choosing a legal professional to represent the SMSF. However, a key consideration is their previous experience representing an SMSF. Many legal professionals specialise in the SMSF space and can draw from their past experiences and knowledge to deliver the best possible outcomes for the SMSFs.

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Conclusion Setting up an SMSF can be daunting, but with the right team of professionals, trustees can focus on building the wealth of members and achieving retirement goals.

Choosing the right team requires thorough research and analysis but by using this guide to help inform decisions, SMSFs can ensure they partner with professionals that are committed to the success of the SMSF and its members.

Disclaimer: This information doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service – please consider whether it’s right for you. The Macquarie Cash Management Account and Macquarie Cash Management Accelerator Account are deposit products issued by Macquarie Bank Limited.

SMSF Awards

SMSF AWARDS WINNERS AND FINALISTS The SMSF Awards 2023 recognising the industry’s best service providers

SMSF Adviser’s Navigating Excellence Guide 2024

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SMSF Awards

SMSF Adviser’s Navigating Excellence Guide 2024

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SMSF DOCUMENTATION PROVIDER OF THE YEAR

SMSF AUDIT PROVIDER OF THE YEAR

ACTUARIAL CERTIFICATE PROVIDER OF THE YEAR

SMSF INSURANCE PROVIDER OF THE YEAR

SMSF LENDER OF THE YEAR

WINNER

WINNER

WINNER

WINNER

WINNER

Acis

Aquila Super

Act2 Solutions

AIA

Mortgage Ezy

FINALISTS

FINALISTS

FINALISTS

FINALISTS

FINALISTS

Cleardocs

ASF Audits

Accurium

AMP

AMP

Cooper Grace Ward

Deloitte

Cleardocs

Asteron

Bendigo Bank

DBA Lawyers

Evolv Super

Heffron

BT

Bank of Queensland

Heffron

Seamless SMSF

Lime Actuarial

Commonwealth Bank

Granite Home Loans

LightYear Docs

NobleOak

La Trobe Financial

NowInfinity

OnePath

Liberty Financial

Smarter SMSF

TAL Zurich

SMSF Awards

CASH AND TERM DEPOSIT PLATFORM OF THE YEAR

SMSF Adviser’s Navigating Excellence Guide 2024

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ETF PROVIDER OF THE YEAR

FIXED INCOME PROVIDER OF THE YEAR

SMSF ADVICE PLATFORM OF THE YEAR

AUSTRALIAN EQUITY FUND MANAGER OF THE YEAR

WINNER

WINNER

WINNER

WINNER

WINNER

Australian Money Market

Global X

Franklin Templeton

HUB24

Macquarie

FINALISTS

FINALISTS

FINALISTS

FINALISTS

FINALISTS

BetaShares

AMP Capital

AMP North

Aberdeen

iShares

Challenger

Asgard

AMP Capital

Van Eck

Colonial First State

BT Panorama

Ausbil

Russell Investments

FIIG Securities

AUSIEX

Bennelong

Schroders

La Trobe Financial

FirstWrap

Colonial First State

State Street

Macquarie

IOOF

Fidelity

Vanguard

PIMCO

Macquarie Wrap

Perpetual

Schroders

MasterKey

Schroders

Vanguard

Netwealth

Income Asset Management FIIG Securities The Term Deposit Shop

Praemium

SMSF Awards

SMSF Adviser’s Navigating Excellence Guide 2024

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GLOBAL EQUITIES FUND OF THE YEAR

SMSF EDUCATION PROVIDER OF THE YEAR

CASH AND TERM DEPOSIT PROVIDER OF THE YEAR

SMSF ADMINISTRATION PLATFORM OF THE YEAR

SMSF SOFTWARE PROVIDER OF THE YEAR

WINNER

WINNER

WINNER

WINNER

WINNER

Macquarie

Heffron

Macquarie

Heffron

Class

FINALISTS

FINALISTS

FINALISTS

FINALISTS

FINALISTS

Aberdeen

Accurium

Adelaide Bank

Intello

BGL

AMP Capital

Light Year Docs

AMP Bank

SMSF Alliance

MYOB

BlackRock

Smarter SMSF

ANZ

SuperConcepts

SuperConcepts

Magellan Platinum Asset Management Vanguard

SuperConcepts

Bank of Queensland

SuperGuardian

CBA

Zurich

ING NAB Rabobank St.George Suncorp UBank Westpac

Macquarie

MACQUARIE

SMSF Adviser’s 2023 Cash and Term Deposit Provider of the Year Winner’s Q&A profile

SMSF Adviser’s Navigating Excellence Guide 2024

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Macquarie

Q. Can you tell us about Macquarie and its history in the SMSF space?

Macquarie has been a leader in the cash management space for more than 40 years.

We work with SMSF trustees, advisers, stockbrokers and SMSF administrators, and we offer a suite of cash management solutions that have been purpose built with both the adviser and their clients front of mind.

Our SMSF bank account, the Macquarie Cash Management Account (CMA), is designed to be the centre of each client’s wealth ecosystem. It connects seamlessly with more than 45 other platforms, including Macquarie’s term deposits and our linked high interest savings account, the Macquarie Cash Management Accelerator Account.

In addition to our cash management capability, we also offer a Wrap platform, managed accounts, business lending and more; and we have a national team of experts to work with your firm and help you both meet the needs of your clients, but also to help your business thrive and grow.

SMSF Adviser’s Navigating Excellence Guide 2024

Q. How has Macquarie’s SMSF service proposition evolved overtime?

As a leader in the cash management space, we’re continually investing in our cash management capability: Advisers can access our adviser portal, Adviser Online, to manage clients’ accounts and transact on their behalf, with their permission.

Clients can view their accounts using our award-winning mobile banking app.

We also offer access to a high-interest savings account linked to the CMA – our Cash Management Accelerator Account.

As part of our commitment to security and fraud prevention, the Macquarie Authenticator app is our stand-alone mobile multi-factor authentication app, which is a more secure method than SMS verification. It allows advisers to send their clients push notifications to verify and approve transactions and account changes.

For many SMSF trustees, their superannuation is one of their biggest investments, and we take the security of that investment very seriously.

Macquarie Authenticator makes transaction

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WE’VE BEEN WORKING HARD AND INVESTING TO ENSURE OUR CASH ECOSYSTEM HAS COMPETITIVE RATES, NO ACCOUNT-KEEPING FEES, EASY ONLINE APPLICATIONS, INNOVATIVE FUNCTIONALITY AND SMOOTH INTEGRATION WITH AN ADVISER’S EXISTING BUSINESS SYSTEMS. Olivia McArdle, head of payments and deposits

Macquarie

SMSF Adviser’s Navigating Excellence Guide 2024

approvals easier for advisers, and more visible and secure for clients – while protecting both the adviser and their clients against fraud.

Sure, on one hand that’s about the investment decisions you make – but it’s also about what you put in place to protect the funds from scammers.

Q. What are the key differences between servicing SMSF clients and the broader investment market?

There’s probably two key things to highlight here:

Q. How does Macquarie differentiate itself? What has underpinned Macquarie’s recent success?

Our CMA is purpose-built for both advisers and their clients. We offer easy online applications, instant visibility for advisers of their clients’ balances through our adviser portal, and additional capability like adviser-initiated payments. We also integrate with more than 45 other accounting and investment management platforms.

Cash flow management is the lifeblood of an SMSF. You’re going to need your SMSF bank account for the full lifecycle of your fund – to accept member contributions and transfer your previous super balance, to receive investment income (like dividends) and to pay expenses such as tax or insurance premiums.

You need cash available to make investments and then depending on your strategy you’ll receive distributions as cash too. Then when you retire, you’ll need to start drawing cash out as your pension. So for an SMSF, the SMSF bank account you choose really matters.

Superannuation is often the largest investment an Australian will have – so it needs to be secure. We know that the decisions that an SMSF trustee makes need to protect the funds within the SMSF and provide financial security for the fund’s members into the future.

Accountants and advisers need to be able to view, reconcile and audit SMSF transactions easily, and integration into their own software makes that easier. It’s about efficiency – how can advisers and accountants have visibility and control, and how can that visibility integrate into their everyday systems?

We also offer access to a high-interest savings account, the Macquarie Cash Management Accelerator Account, linked to the CMA. Clients can access a higher rate on their at-call cash, while making sure they still have funds available for investment opportunities that arise.

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Q. What are some of the key metrics or performance indicators attesting to Macquarie’s success in recent years?

What’s most important to us is the satisfaction of the advisers and clients who use our account.

Our Cash Management Account (CMA) is the chosen cash hub for close to one in three SMSFs1 in Australia, and we’re both proud and grateful to have been awarded best cash and term deposits by the SMSF Adviser SMSF Awards for seven years3 – and we’d like to say a big thank you to all the advisers and trustees who voted for us.

Q. Why should SMSF trustees partner with Macquarie?

SMSF trustees may like to consider Macquarie’s Cash Management Account and receive: Easy online account opening and an awardwinning mobile app Competitive interest rates and no account keeping fees2 Integration with over 45 accounting and financial advice platforms to give your adviser or accountant the ability to report on your SMSF and transact on your behalf with permission

Macquarie

Seamless connectivity to Macquarie’s high- interest Accelerator account and term deposits 10 years of statements at your fingertips, and the ability to categorise and search your transactions easily Industry-leading digital security with Macquarie Authenticator, a stand-alone mobile authentication app that makes authorisations seamless and secure.

Trustees can also explore other Macquarie offerings, including term deposits, managed funds or ETFs, depending on the investment strategy of the SMSF. Q. How did it feel to be recognised as a leading SMSF services provider at the 2023 SMSF Awards?

We’re really proud and excited to win this award, knowing that SMSF trustees, advisers and accountants voted for us. It’s a real validation that our products and our capability is resonating well in market.

We’ve been working hard and investing to ensure our cash ecosystem has competitive rates, no

SMSF Adviser’s Navigating Excellence Guide 2024

account-keeping fees, easy online applications, innovative functionality and smooth integration with an adviser’s existing business systems.

Our aim at Macquarie is to offer advisers and accountants seamless visibility over clients’ accounts, so that they have more time to focus on what’s important – their clients.

Q. Looking ahead, how does Macquarie plan to continue delivering for advisers and clients with our SMSF offering?

We’re always investing to continue to improve our digital experience and capabilities so that trustees, advisers and accountants can access the solutions they need to get ahead.

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Disclaimer: This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL) and does not take into account your objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire a product mentioned, a person should obtain and review the terms and conditions and/or relevant offer documents relating to that product and also seek independent financial, legal and taxation advice. Target Market Determinations are available at macquarie.com.au/ddo.

This information is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service and nothing in this article shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction.

The Macquarie Cash Management Account (CMA), Macquarie Cash Management Accelerator Account (Accelerator) and Macquarie Term Deposits are issued by MBL.

To learn more about how Macquarie can assist you, click here.

1

ource: Macquarie Bank Limited data, ATO S Self-managed Super Fund Statistical Report.

2

Early break fees apply to term deposits.

3

Award from 2016 to 2021, and 2023.

Aquila Super

AQUILA SUPER

SMSF Adviser’s 2023 SMSF Audit Provider of the Year Winner’s Q&A profile

SMSF Adviser’s Navigating Excellence Guide 2024

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Aquila Super

Q. Can you tell us about Aquila Super and its history in the SMSF space?

Aquila Super is one of the most established SMSF firms in Australia, having started operations in August 1997 in Canberra.

The founder of Aquila Super (Chris Levy) had previously been a manager responsible for SMSFs for the Canberra office of EY and before that PwC (or Price Waterhouse as it was called back in the day). At this stage, SMSFs were called excluded funds and were governed by the Insurance and Superannuation Commission (ISC), which became APRA. Aquila Super is now a leading SMSF audit and administration specialist that supports accounting practices’ compliance and SMSF sector growth. Accounting practices increasingly actively seek to partner with an external SMSF auditor to boost their capacity and extend their services.

In particular, accounting practices appreciate that partnering with Aquila Super removes the complexity, liability, and internal resource drain from a practice’s regular accounting services.

SMSF Adviser’s Navigating Excellence Guide 2024

Q. What sets Aquila Super apart from the rest of the market?

Our points of difference are: Australian-based firm (no offshoring) Custom-built interactive audit portal Actively striving to secure client data at the highest capacity Short turnaround times with competitive pricing Tight partner/client relationships Highly specialised technical compliance knowledge Recognised industry experts who are regularly sought for media commentary Q. How has Aquila’s SMSF service proposition evolved over time?

While Aquila Super has always focused exclusively on self-managed superannuation, its service offering has morphed considerably since 1997.

Initially, the firm focused solely on accounting and technical assistance to accounting firms, essentially acting as their SMSF division.

Furthermore, the firm did not initially offer an audit service, partly based on the principle that as it was the accountant’s client, they should be willing

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THERE ARE A FEW SMSF SPECIALIST FIRMS THAT STAND HEAD AND SHOULDERS ABOVE THE MANY. TO BE RECOGNISED AS BEING AT LEAST EQUAL TO THESE SMSF CHAMPIONS WAS BOTH SURPRISING AND A DEEPLY HUMBLING EXPERIENCE. Chris Levy, founder of Aquila Super

Aquila Super

SMSF Adviser’s Navigating Excellence Guide 2024

to take ultimate responsibility for any advice provided to a trustee.

3.

A ‘one-size fits all’ approach to the provision of accounting and especially auditing services, leading to sub-optimal strategic outcomes.

As the accounting firms increasingly came to rely on the technical and compliance advice of Aquila Super, this position was no longer feasible, and the firm started offering an SMSF audit service in the early 2000s. Around this time, the firm also began accepting financial planning and individual trustees which has grown considerably, although the heavy emphasis on assisting fellow accounting firms persists to this day.

Q. How does Aquila help SMSF trustees manage key pain points in the accounting and auditing process?

When an SMSF client encounters problems with the accounting or auditing aspects of an SMSF, we find that the issue will typically fall into one of three buckets: 1.

A lack of expertise and knowledge from the accounting/auditing professionals involved.

2.

A lack of resources which may be due to a lack of properly trained professional staff or poor and/or ineffective software and systems. Either way, such problems typically result in delays, poor service.

Recognising these potential problems and pain points, Aquila Super invests significantly in the technical training of the professional team and the IT systems and framework that supports them. Doing so allows the team to mitigate and resolve issues efficiently and provide tailored solutions to client problems.

Q. What sets Aquila Super apart from key competitors? What has underpinned its recent success?

While there are many similarities between Aquila Super and the large SMSF firms that we compete with, there are two key differences that we embrace.

Firstly, the work done by Aquila Super is entirely done within Australia by Australians with no part of our accounting or audit service being sent overseas. Not only does this remove various security and privacy concerns that we have with such operations, but it allows us to invest in professional staff within the country.

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Working in parallel to this is a philosophy that the firm stays true to its chartered accounting roots, acting as a trusted and experienced advisor to our clients rather than a sort of massive assembly line more akin to a factory than a professional services firm.

Q. What are some of the key metrics or performance indicators attesting to Aquila’s success in recent years?

Aquila Super as a firm has experienced significant growth since its inception. Revenue has more than doubled over the six years, partly through organic growth and partly through acquisition.

The number of SMSF audits conducted by the firm, largely on behalf of other accounting firms, has been a key driver for Aquila’s recent success, growing from approximately 3,500 to over 8,000 audits over the last five years. The physical footprint of the firm has also grown over the last 10 years from a single office in Canberra to also having an office in Sydney and, most recently, the Gold Coast.

Q. Why should accountants partner with Aquila Super to support SMSF trustees?

Accountants that partner with Aquila Super can expect:

Aquila Super

SMSF Adviser’s Navigating Excellence Guide 2024

THE WORK DONE BY AQUILA SUPER IS ENTIRELY DONE WITHIN AUSTRALIA

BY AUSTRALIANS WITH NO PART OF OUR ACCOUNTING OR AUDIT SERVICE BEING SENT OVERSEAS. NOT ONLY DOES THIS REMOVE VARIOUS SECURITY AND PRIVACY CONCERNS THAT WE HAVE WITH SUCH OPERATIONS, BUT IT ALLOWS US TO INVEST IN PROFESSIONAL STAFF WITHIN THE COUNTRY. Chris Levy, founder of Aquila Super

Highly competent and experienced staff all based in Australia and well versed in the complexities of SMSF legislation and accounting. This professional competency and knowledge have been built up over three decades and is constantly refined through extensive staff development.

Efficient and comprehensive communication throughout an accounting or auditing engagement through the use of our custom web-based portals and IT systems.

A strong focus on client service including the delivery of work in a timely manner.

A commercial and creative approach to problems and issues.

Q. How did it feel to be recognised as a leading SMSF services provider at the 2023 SMSF Awards?

The SMSF accounting and audit industry is populated by a vast number of practitioners.

There are a few SMSF specialist firms that stand head and shoulders above the many. To be recognised as being at least equal to these SMSF champions was both surprising and a deeply humbling experience. While we have spent nearly

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30 years on a constant path of improvement and refinement, we never suspected that we would one day reach such a lofty pinnacle.

Q. Looking ahead, how does Aquila Super plan to capitalise on its recent successes and further develop its SMSF offering?

The primary benefit of winning the award and achieving other successes is that it allows us to project our service offering to a far larger audience. We believe that what we do at Aquila Super is unique for firms our size – a specialised yet large SMSF chartered accountant practice built upon the skills of a professional team of Australians based in Australia.

To learn more about how Aquila Super can assist you, click here.

Franklin Templeton

FRANKLIN TEMPLETON

SMSF Adviser’s 2023 Fixed Income Provider of the Year Winner’s Q&A profile

SMSF Adviser’s Navigating Excellence Guide 2024

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Franklin Templeton

Q. Can you tell us about Franklin Templeton and its history in the SMSF space?

Franklin Templeton’s history in the SMSF space in Australia is marked by our comprehensive range of investment strategies tailored to the unique needs of self-managed super funds. Over the years, we have developed a robust portfolio of strategies that includes local and international equities, fixed income, and now expanding into alternatives. This wide array of offerings ensures that Australian SMSF trustees can find diverse investment options with us, suitable for a range of investment strategies and risk profiles.

Q. How has Franklin Templeton’s SMSF service proposition evolved over time?

Our SMSF service proposition is evolving from focusing primarily on traditional asset classes to incorporating more innovative solutions, such as our award-winning global fixed income offerings.

Now, we are poised to expand into the alternatives space, aligning with current market best practices and offering SMSF trustees a broader range of investment opportunities. Over the past decade, Franklin Templeton have increased the number of managed investment schemes from 7 to over 30

SMSF Adviser’s Navigating Excellence Guide 2024

today. In recent years we have also moved into Active ETFs which have been a popular vehicle for SMSF clients.

Q. What sets Franklin Templeton apart from key competitors? What has underpinned its recent success?

Franklin Templeton distinguishes itself in a competitive financial landscape not only through the expertise and diverse strategies of its specialist investment managers but also with its scale with management of over US$483 billion in fixed income assets. These teams, renowned for their deep research and extensive experience, play a vital role in delivering a broad spectrum of actively managed offerings.

For example, Brandywine Global is celebrated for its disciplined approach and focus on longterm value. Western Asset is recognised as a premier fixed income manager, providing a wide spectrum of strategies for global investors.

Additionally, Franklin Templeton Fixed Income is also a strong specialist investment manager, contributing its own unique expertise in fixed income strategies, further enriching the investment options available under the Franklin Templeton umbrella.

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OUR GLOBAL RESOURCES AND LOCAL MARKET UNDERSTANDING ALLOWS US TO CREATE INVESTMENT STRATEGIES THAT EMPOWER TRUSTEES TO MAKE INFORMED DECISIONS THAT ALIGN WITH THEIR LONG-TERM FINANCIAL GOALS. Felicity Walsh, managing director, Australia and New Zealand

Franklin Templeton

SMSF Adviser’s Navigating Excellence Guide 2024

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This diversity in expertise allows Franklin Templeton to cater to a variety of investment styles and asset classes. The company’s innovation is particularly evident in areas like unconstrained global fixed income investing, where it has been a pioneer for almost three decades.

Additionally, teams like Martin Currie and Royce Investment Partners exemplify the company’s commitment to client-focused equity solutions, with Martin Currie specialising in crafting high-conviction equity portfolios and Royce Investment Partners being a market-leader in small-cap investing for over 50 years.

Q. What are the key differences between servicing SMSF clients and the broader investment market?

SMSF clients differ from the wider market in their need for strategies that have both a longterm outlook and consider their differentiated tax status. Franklin Templeton’s range of offerings in fixed income, international markets, and alternatives can be used to help to meet these unique requirements. SMSF clients typically have larger account balances and their investment philosophy and objectives may lead

Franklin Templeton

SMSF Adviser’s Navigating Excellence Guide 2024

them to more targeted portfolio allocations, we offer a number of investment solutions within each asset class that can meet specific client investment objectives.

resources and local market understanding allows us to create investment strategies that empower trustees to make informed decisions that align with their long-term financial goals.

Specifically on retirement-focused products in addition our fixed income offerings, we also have equity income products offered by Martin Currie which are designed to optimise income in retirement which will be beneficial for SMSF clients when they convert from accumulation to decumulation.

Q. How did it feel to be recognised as a leading SMSF services provider at the 2023 SMSF Awards?

Being recognised at the 2023 SMSF Awards is a source of immense pride and validation of our team’s hard work. It reinforces our dedication to delivering high-quality service and innovative investment options in the SMSF space.

Q. What are some of the key metrics or performance indicators attesting to Franklin Templeton’s success in recent years?

We view key indicators of our success as the ability to achieve our investment strategies stated objectives within their respective timeframes.

If we deliver performance for our investors this will in turn lead to inflows into Franklin Templeton Funds and the growth of our business overall.

Q. Why should SMSF trustees partner with Franklin Templeton?

SMSF trustees should consider partnering with Franklin Templeton for our unique breadth of offerings and long-standing expertise. Our global

Q. Looking ahead, how does Franklin Templeton plan to capitalise on its recent successes and further develop its SMSF offering?

Looking forward, we plan to build on our successful fixed income and international investment offerings by further developing our alternatives strategies. Just last year, we launched our first managed fund alternatives product, the Franklin K2 Athena Fund.

This expansion is geared towards providing SMSF trustees with both access to high quality alternatives and the opportunity to diversify and strengthen their investment strategies.

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To learn more about how Franklin Templeton can assist you, click here.

Acis

ACIS

SMSF Adviser’s 2023 SMSF Documentation Provider of the Year Winner’s Q&A profile

SMSF Adviser’s Navigating Excellence Guide 2024

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Acis

Q. Can you tell us about Acis and its history in the SMSF space?

As a key player in the SMSF industry for over 30 years, Acis has been at the forefront of blending expert knowledge with technological innovation.

In my time here, I’ve seen firsthand how we’ve not just participated in the industry but have actively shaped it, leading the way in setting SMSF standards and adapting quickly to new changes.

Our commitment at Acis goes beyond keeping pace with the evolving landscape. We focus on delivering SMSF documents and services that are of the highest quality and practicality. From the beginning to the end of the SMSF management process, we ensure that advisers receive all the support they need.

Q. How has Acis’ SMSF service proposition evolved over time?

The SMSF space is constantly evolving and we pride ourselves on being ahead of the curve – we have to be. This is achieved by having the best people and technology solutions all aimed at delivering second-to-none solutions for our clients.

SMSF Adviser’s Navigating Excellence Guide 2024

A central part of the evolution of our SMSF offering is SuperDepot, an innovative platform that automates SMSF deed updates. This ensures our clients’ deeds remain current with industry changes, effortlessly and without the usual administrative hassle.

Q. How does Acis help SMSF trustees manage key pain points in the documentation and compliance process?

Acis assists SMSF trustees by providing their advisers with the tools to confidently engage with their trustee clients, providing clarity and assurance when it comes to compliance and documentation.

Q. What sets Acis apart from key competitors? What has underpinned its recent success?

Our investment in people and technology. We appreciate you can’t deliver the best without having the best people. This approach culminates in the perfect blend of humans and technology. An essential blend providing advisers with a fit-for-purpose solution to deliver market-leading legal documents to their clients, without the risk, while taking

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OUR INNOVATIVE SOLUTIONS LIKE SUPERDEPOT HIGHLIGHT OUR CLIENT FOCUS AND DRIVE TO DELIVER SOLUTIONS THAT EQUIP OUR CLIENTS WITH THE TOOLS THEY REQUIRE TO DELIVER FIT-FOR-PURPOSE SOLUTIONS TO SMSF TRUSTEES WITH CONFIDENCE. Mick Nielsen, national account director

Acis

SMSF Adviser’s Navigating Excellence Guide 2024

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advantage of all the practice efficiencies technology delivers.

Acis’ enduring success is attributable to our strategic, collaborative approach towards documentation. Our SMSF deeds are the result of collective expertise from a distinguished national panel, comprising our in-house legal professionals, specialist SMSF lawyers, administrators, accountants, and financial planners. We’ve always focused on combining real-world insights with legal expertise, making us a trusted name in SMSF documentation.

Q. What are some of the key metrics or performance indicators attesting to Acis’ success in recent years?

Acis’ success in recent years is evident through key metrics like our growing market share, the positive feedback from clients, and the notable increase in subscriptions to our SuperDepot solution. These factors collectively highlight our strong position and positive impact in the SMSF services market.

Q. Why should SMSF trustees partner with Acis?

Acis

SMSF Adviser’s Navigating Excellence Guide 2024

OUR COMMITMENT AT ACIS GOES BEYOND KEEPING PACE WITH THE EVOLVING LANDSCAPE. WE FOCUS ON DELIVERING SMSF DOCUMENTS AND SERVICES THAT ARE OF THE HIGHEST QUALITY AND PRACTICALITY. FROM THE BEGINNING TO THE END OF THE SMSF MANAGEMENT PROCESS, WE ENSURE THAT ADVISERS RECEIVE ALL THE SUPPORT THEY NEED. Mick Nielsen, national account director

Having a strong service and support culture has always underpinned our offering here at Acis.

We strive to create strong working relationships, as these are crucial in tailoring solutions that perfectly fit our clients’ needs.

Risk mitigation is also crucial to our offering.

Our clients have the assurance that their legal documents are produced by a law firm and not generated by a robotic template solution.

This business model is achieved by having our own internally incorporated legal practice and not relying on an outsourced solution, which is common in our industry. We will never let a nonlawyer client create their own legal documents.

Q. How did it feel to be recognised as a leading SMSF services provider at the 2023 SMSF Awards?

Proud! Being recognised for this award for the third time in four years is a testament to the hard work, dedication, and expertise that our team has consistently demonstrated in the SMSF sector. It reaffirms our commitment to excellence and our unwavering focus on delivering the highest standards of service to our clients.

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Q. Looking ahead, how does Acis plan to capitalise on its recent successes and further develop its SMSF offering?

To maintain our leading edge, Acis is committed to continuously listening to our clients’ needs.

This feedback-driven approach guides our ongoing evolution.

The feedback we’ve received clearly indicates the effectiveness of the SuperDepot platform and our SMSF software integrations in improving operational efficiency.

Moving forward, our focus will be on further enhancing these tools while continuing to explore new opportunities.

To learn more about how Acis can assist you, click here.

Our Partners

WITH THANKS TO OUR PARTNERS

SMSF Adviser’s Navigating Excellence Guide 2024

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Acis

Aquila Super

Franklin Templeton

Macquarie

www.smsfadviser.com