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SMSF trades tilt towards selling
Self-managed superannuation fund (SMSF) trades were up 15% during the first six months of 2019 thanks to pre-election jitters, according to Commsec.
Commsec data found the trades had a slight tilt towards selling, accounting for 53% of the total traded value.
“A key factor in this shift appears to have been uncertainty over potential policy changes in the lead up to the federal election,” Commsec said.
“The financials, telecommunications and materials sectors experienced the most net selling activity during the first half of 2019. In terms of overall traded value, with investors possibly concerned about the sustainability of dividends and imputation credits, as well as the impact of a slow housing market on bank profitability.”
Financials continued to be the dominant sector in SMSF portfolios, representing almost half the value of all holdings, despite some selling of the Big Four banks in the first half of 2019.
SMSFs were also keen to have diversification as international funds represented 48.8% of the traded value of exchange traded funds (ETFs), steady from the previous half year at 48.9%.
“While direct international trading focused on US markets trade has continued to slow, SMSFs are seeking diversification ad income across different assets and regions through exchange-trade funds (ETFs) and Listed Investment Companies (LICs),” Commsec said.
“In particular, SMSF are using these vehicles to increase their exposure to fixed income securities.”
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