Super Wraps
Super Wraps: What They Are and Why You Should Consider Them
Insights from Expert Marco Mellado
Super wraps are a lesser-known but highly effective financial tool for those looking to take greater control of their superannuation investments. To provide expert insight into super wraps, Marco Mellado, a renowned financial advisor, recently spoke on ABC Radio about the benefits and considerations of using super wraps to manage your retirement savings.
What is a Super Wrap?
According to Marco Mellado, super wraps are designed for individuals who want to have a bit more control over their superannuation investments without the administrative burden of a self-managed super fund (SMSF). Super wraps allow you to choose from a broad range of investments, from ASX-listed stocks to managed portfolios, hedge funds, and bonds. It’s an all-in-one package that “wraps” your investments into one centralized account.

Unlike traditional superannuation funds, where your investment decisions are made by fund managers, super wraps put the control directly in your hands. You decide what to buy, hold, or sell within the wrap. This flexibility makes them appealing to people who want a closer relationship with their superannuation, without the heavy compliance and administrative responsibilities of an SMSF.
Who Should Consider a Super Wrap?
Super wraps are ideal for individuals who:
- Want more investment control but don’t want the hassle of managing their own SMSF.
- Are interested in growing their nest egg and want transparency in their investments.
- Prefer not to be removed from their money, unlike in many larger, publicly available funds where you may not know exactly what you’re invested in.
As Mellado notes, “You know exactly what you own, and you’re the one making the decisions.” This level of control makes super wraps appealing to those who want direct involvement in their financial future.
How Does a Super Wrap Work?
A super wrap centralizes your investments around a single cash account. All your contributions, investment earnings, and proceeds from sales are deposited into this account. This simplicity ensures that all transactions are tracked easily, giving you excellent reporting and transparency. You can see how much each of your investments has grown, right down to the daily performance.
Super Wrap vs. SMSF
While both super wraps and SMSFs give you control over your investments, Mellado highlights some key differences:
- Investment Menu: An SMSF allows you to invest in almost anything, from real estate to collectibles. In contrast, a super wrap has an extensive, though not limitless, menu of investment options.
- Compliance: SMSFs require significant administrative work, including audits, financial statements, compliance and being your own trustee. A super wrap, on the other hand, is managed by a professional trustee, reducing your administrative load and risk.
- Membership: Super wraps are for individuals, whereas SMSFs can have up to six members.

Cost of a Super Wrap
Despite their flexibility, super wraps are relatively affordable. For example, if you have a $500,000 balance, the annual administration fee might be around $2,000 or 0.4%. However, it’s important to note that additional fees may apply depending on the investments you choose within the wrap, such as professionally managed funds.
Advantages and Disadvantages of Super Wraps
Marco explains that super wraps offer a range of advantages, including:
- Control: You choose what to invest in and how to manage your portfolio.
- Transparency: You have clear visibility over all your investments and their performance.
- Franking Credits: Super wraps ensure that franking credits from Australian shares go directly to you, rather than being absorbed by the larger pool, as can happen in bigger funds.
However, super wraps also require you to be more engaged in managing your investments. For some people, this could be a drawback if they don’t want to spend time overseeing their portfolio. Here is where the assistance of a financial adviser is often sought.
Insurance in Super Wraps
Marco also addresses the question of whether super wraps offer insurance options, such as income protection or total and permanent disability (TPD) cover. The answer is yes—though insurance might be slightly more expensive in a wrap than in a larger fund where group rates apply.
Is a Super Wrap Right for You?
If you are considering switching to a super wrap, Mellado advises first reviewing your current super fund. If you’re content with its performance and don’t want more control over your investments, a super wrap may not be necessary. However, if you’re seeking more transparency, control, and tailored investment choices, a super wrap could be the ideal solution.
Marco Mellado emphasizes that super wraps are best suited for those who are ready to be more involved in their investment decisions, but don’t want the full burden of managing an SMSF. With the right advice and a solid understanding of your financial goals, super wraps can be a powerful tool to help you achieve the retirement you desire.
For more expert advice on super wraps and how they can fit into your financial strategy, be sure to consult with a qualified financial advisor like Marco Mellado.