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Mafematica brings robo-advice to SMSFs

ATO; trustee; valuation

The ATO will accept asset valuations from trustees but has reminded them of their responsibilities in accurately sourcing that information.

Financial services firm Mafematica has launched a robo-advice offering to the SMSF market designed to help trustees overcome their ‘loneliness’ in regard to their retirement planning.

Called Robo-Advisor, the offering is based on a financial calculator that projects estimates of future income and SMSF balances.

Specifically it will provide automated advice based on mathematical algorithms to produce a desired result in terms of future income or capital value at an affordable price.

The service will be internet-based and can be accessed by SMSF professionals and trustees via traditional web avenues as well as mobile phones, and has the capability of operating multiple websites each tailored for different advisers or age groups.

“We were able to talk to SMSF trustees and SMSF accountants in particular about our investment management calculator system that assessed a situation where we could estimate the retirement income they would receive if they had an investment portfolio of ‘x’,” Mafematica managing director Derek Condell told selfmanagedsuper.

“Everybody loved it and said they’d never seen anything like it that calculates an estimate of retirement income based on the actual investments.

“The calculator also provides an estimate of your wealth and so it shows a graphic of how your SMSF will grow over time and how it will deplete once you start drawing down from it after the age of 65.

“So it’s a very powerful system.”

Robo-Advisor deliberately offers portfolios of listed securities and has consciously excluded the use of vehicles such as wrap platforms to avoid additional fees and complicated processes.

It does not incorporate any administration functionality, but does allow accountants to use the same-day account facilities of SuperMate, BGL and Class Super.

In addition, the new service will provide a technical education facility for accountants.

Users of Robo-Advisor will only be charged transactional fees.

The new service has established agreements with some SMSF actuarial firms to validate its processes and has received support from PricewaterhouseCoopers through the signing of a shares subscription deed.


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