benthonic wrote:as you might have read somewhere on the forum afrs-plan-to-hold-shares-1142.html Australian Super allows direct share ownership in ASX200 companies but that excludes LICs. Big thing to watch with these companies is the costs. I actually used Aust Super and had shares in it in early 2004-5 but never thought I was getting the benefits. Charges for brokerage were high and the capital gains treatment seemed suss. Now I hold LICs in my own SMSF and its beaut.

IOOF are starting to introduce share options in their holdings:

http://www.ioof.com.au/investments/inve ... X%3AMAX1D2
but there are only 60 ASX companies - no LICs - allowed and pretty eclectic.

Super punters will be able to trade in stocks in alternative DIY fund

Tim Blue From: The Australian December 11, 2010 12:00AM

HOW do you fancy the idea of a self-managed super fund without the big price tag that usually comes with it?

It's a deal coming your way soon, with many of the advantages and few of the disadvantages of a full self-managed super fund.

It already exists in several industry super funds and on the MLC Masterkey Custom and Navigator platforms but expect to see ramped-up offerings from next July.

Much like trading on platforms run by CommSec and Etrade, you will be able to buy and sell shares and later exchange traded funds and managed funds in a super fund. Popping the paintings or investment property into the portfolio is not yet on the cards, but down the track it might emerge.

As a real alternative to a DIY fund, an investor can do away with the paperwork burden of tax returns, audits and financial statements, and the headache, time and cost involved.

Three industry funds, AustralianSuper, legalsuper and CareSuper , already offer an element of self-direction. For example, AustralianSuper members can transact shares from the ASX 200 list.

From mid-2011, it is planned to widen the offering to include stocks in the ASX 300 index and exchange traded funds (ETFs).

It will also allow one level of day trading, that is, to buy a stock but not sell the same one on the same day.

Fees will apply, in addition to the usual administration fee of $1.50 a week, but they are likely to be highly competitive with mainstream broking services. AustralianSuper charges $39 a year for access to its ASX 200 option, although this is likely to rise and have a brokerage fee added to it, according to the size of the trade.

CareSuper chief executive Julie Lander says pricing is likely to be in the order of a few hundred dollars a year, in contrast to the $3000 or $4000 equivalent cost of a DIY fund. "Members will have access to the broad range of investments available to wholesale investors like CareSuper, which manage all the asset allocation decisions, trading and tax issues, while having the control and flexibility of selecting Australian stocks at a fraction of the cost of running a DIY fund," she says.

MLC, which has offered investor-directed trading for several years, allows trading in ASX 300 stocks, and trading in ETFs and warrants.

Bruce Hawkins, general manager of the Navigator platform, agrees that investors are seeking a greater degree of control over their funds, based on their own decision making or acting on financial advice.

"They want the flexibility that our platforms offer," he says.

MLC's equities trading option comes as a standard feature of the platform, with the average platform fee equating to 75 basis points of the funds under management. Separate brokerage costs apply to any share trades.

At the industry funds, rules apply to ensure prudent investing, where, for example, one stock cannot form more than 20 per cent of the total value of the account balance.

CareSuper and legalsuper will not allow direct equities to form more than half of a fund balance within this option, although other fund rules differ slightly.

In the wider industry, there is concern that, in the aftermath of the global financial crisis, financially illiterate super members might gamble away their superannuation savings.

But most super fund executives are not particularly concerned about the consequences of facilitating trading for members.

"The sort of member who decides to trade in shares is more than likely going to be financially savvy and informed about the risks of share trading" legalsuper chief executive Andrew Proebstl says. [What a lot of self-serving bulldust. Then they are not the ones who have done their dosh. It is the same lame, half-baked, correction make that unbaked, statements which came from CFD providers. Fwits. Judd]

"We believe that by expanding the options available to members within our fund we will be better placed to retain members.

"For example, we offer high life and disablement insurance cover at low premiums that individuals cannot access on a retail basis.

"It needs to be remembered that different types of funds are not necessarily mutually exclusive. A person can set up their own SMSF and be a day trader and at the same time be a member of legalsuper, accessing benefits such as competitive insurance."

Opening the doors a little wider to retail investors is one consequence of the growing popularity of self-managed funds, in part a reaction to the poor performance of super funds in recent years.

Financial Services Council (FSC) chief executive John Brogden sees the increased offerings and competitive pricing as an example of the gradual transformation of the super industry.

"As many have expected, we are seeing industry funds move into the retail superannuation market and the bigger funds reach further in the industry fund market. It is a sign that everyone wants the best blend of costs and returns."

AustralianSuper chief executive Ian Silk says the changes will give members some of the freedom of a self-managed fund without the hassles or cost of running it themselves.

"As we upgrade to include the top 300 stocks, along with some other improvements, our members will get the best of both worlds -- some of the freedoms of a self-managed super fund and have access to asset classes, like infrastructure and commercial property, that as an individual investor they wouldn't normally have. Combine that with a flat admin fee and very low brokerage costs, and we think we have a great offer."

In addition to broker reports and market information, AustralianSuper will offer enhanced education for members.