“SMSFs [are] sick of having [their] managed fund run by AMP or Colonial or one of the big houses,” Karl Siegling, managing director and chief investment officer at Cadence Capital Limited, told SMSF Adviser.

Many funds on the major platforms do not have performance fees and mangers are not heavily invested in the funds, something Mr Siegling also argues does not align the interest of the shareholders with the fund managers.

“Most institutional business is set up with a management fee, there is no performance fee, and the fund managers do not invest in the fund. That is diametrically opposed to what we are doing,” he said.

Cadence Capital Limited, which has an “open mandate” to invest in Australian equities, believes this message is getting more traction amongst investors.