Limited exposure to international stocks for SMSFs has “always been the case,” according to Mr McIlroy, who added it’s an asset class that SMSFs generally are not accessing.

SMSF trustees are not investing in global stocks because many believe it can be difficult, cumbersome and expensive from a trading point of view Mr McIlroy said, adding SMSFs are missing out on the potential “upsides” of international exposure.

Mr McIlroy said with SMSFs there’s a “diversification” benefit with investing in global stocks, which can in turn reduce risk exposure. He also said SMSFs can potentially benefit from any fall in the Australian dollar through investing in international shares.

“Investing in a concentrated portfolio of exceptional dividend growing companies, with an absolute value bias, will generate attractive long-term returns with less than average volatility,” Mr McIlroy added.

Mr McIlroy also said by using a managed account approach rather than a managed fund, investors will get a “much different” tax outcome as the individual stocks are owned by the SMSF.