Platform providers need to frame their offerings for the self-managed superannuation fund (SMSF) market around strategy to achieve some meaningful traction in the sector, according to an industry specialist.
"Platform providers need to find a strategy and develop product around that strategy, as opposed to saying this product fits here. They need to look for the strategy and then develop product for that strategy," SMSF Strategies principal Grant Abbott said.
"This is a niche market and when you've got a niche, build it, then show them and educate them how it will work and it will actually fit in."
Abbott pointed out that due to the evolving nature of the SMSF sector and what different trustees were looking to do with these structures, an abundance of opportunities would be opening up to platform advisers.
An example he drew upon was the sentiment among SMSF trustees not wanting to actually use the assets in their funds and instead wanting to use the SMSF as an intergenerational wealth vehicle.
"I know advisers who have been asked to build a 30-to-40-year investment strategy. That's pretty radical for the industry. They've basically been asked to build a 30-to-40-year investment strategy with no income, but an emphasis on capital growth and tax effectiveness sitting in the fund," he said.
"Do you know how many people can do it? Well it's never been done and that's the thing: SMSFs are starting to change their shape. It's not about short-term strategies anymore. It's now long, long, long-term strategies and the platform industry needs to start to build product that actually fits this space."
