Self-Managed Super Funds (SMSFs) offer investors greater control over their retirement savings, but with this control comes the challenge of navigating market volatility. As global economic uncertainty continues to create turbulence across asset classes, SMSF trustees are increasingly looking for strategies that offer stability without sacrificing long-term growth. The Aura Global Endowment Fund (AGEF) presents a compelling solution by leveraging institutional-grade investment strategies and processes designed to reduce volatility and to manage and preserve wealth over time.
Market Volatility: A Growing Concern for SMSFs
Over the past decade, SMSFs have become an increasingly popular way for Australians to manage their retirement savings, with over 1.1 million members controlling nearly $1.02 trillion in assets¹. However, the responsibility of managing an SMSF also means exposure to market fluctuations, particularly for those invested in equities, property, and other risk-sensitive asset classes.
Recent economic data shows that equity market volatility remains high, driven by persistent inflation, interest rate uncertainty, and geopolitical tensions². SMSF investors who rely on traditional asset allocation strategies often face the dilemma of balancing growth potential with downside protection. The challenge is further compounded by the fact that many SMSF portfolios lack the diversification and risk management strategies available to institutional investors.
Diversification: The Key to Managing Risk
One of the most effective ways to reduce volatility within an SMSF portfolio is through broad diversification. However, achieving meaningful diversification at an individual investor level can be difficult due to capital constraints and access limitations.
Institutional investors mitigate risk by allocating capital across multiple asset classes, geographies, and investment styles—a strategy that SMSFs can replicate through professionally managed funds⁴ like AGEF.
AGEF’s multi-asset approach provides exposure to a range of investments, including:
- Global equities and fixed income – Stability with growth potential
- Private credit and alternative assets – Uncorrelated returns for mitigation of volatility
- Institutional-grade investment opportunities – Typically unavailable to investors
By spreading capital across these diverse asset classes, SMSF investors can reduce their reliance on any single market segment and create a more resilient portfolio.
An Institutional Approach for Individual SMSF Portfolios
Most Self-Managed Super Fund (SMSF) investors aim to build a resilient, well-diversified portfolio, but many face challenges that institutional investors have long overcome—such as managing volatility, accessing exclusive investment opportunities, and optimising risk-adjusted returns.
The Aura Global Endowment Fund (AGEF) is structured to bring the benefits of institutional-grade investing to individual SMSF portfolios. By leveraging a multi-asset strategy, global diversification, and active risk management, AGEF helps SMSF trustees navigate market fluctuations while preserving capital and maintaining stable, long-term growth.
Unlike traditional retail funds, which often focus on a single asset class, AGEF’s institutional approach provides SMSF investors with:
Proven Strategy – 15 years track record by the portfolio manager generating positive annualised returns of around 9% p.a. with zero annual drawdowns
Institutional Pricing & Access – Wholesale investment opportunities typically reserved for large institutions
Diversified Exposure – Reducing volatility through investments across a range of asset classes including equities, fixed income, private markets, and alternative assets
Capital Preservation Focus – A defensive strategy with a probability weighted portfolio designed to limit downside risk while compounding long-term returns
Liquidity – More flexibility for SMSF investors who need periodic access to their capital
With SMSFs facing increasing challenges in balancing growth, liquidity, and risk management, AGEF provides a practical, institutionally backed solution to strengthen retirement portfolios.
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Sources:
- Highlights SMSF quarterly statistical report December 2024
- Bloomberg, Volatility Curve’s Inversion Suggests Short-Term Stock Pain
Disclaimer: This information is for accredited, qualified, institutional, wholesale or sophisticated investors only and is provided by Aura Capital Pty Ltd AFSL No. 366 230, ABN 48 143 700 887. Aura Capital Pty Ltd is the Trustee of the Fund and a subsidiary of Aura Group Pty Ltd.
Any financial product advice given in this report is of a general nature only. The information has been provided without taking into account the investment objectives, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs. Aura does not guarantee the performance of its funds, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report is based on the information provided to Aura by third parties that may not have been verified. Aura believes that the information is reliable but does not guarantee its accuracy or completeness. Aura is not able to give tax advice and accordingly investors should obtain independent advice from an accountant and/or lawyer before making any decision based on the tax treatment of its investors.
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