POWERED BY MOMENTUM MEDIA
SMSF trustees turn to hybrid securities
Self-managed superannuation fund (SMSF) trustees have increased their fixed interest asset allocations thanks to a rise in hybrid securities for increased income returns and investment opportunities, according to SuperConcepts.
A patters survey conducted by SuperConcepts showed that allocation toward the fixed interest sector is up from 12.2 per cent to 12.8 per cent, due to increased allocations toward hybrid securities.
SuperConcepts executive manager technical and strategic solutions, Phil La Greca, said: "The continued drop in interest rates… has led to increased interest in hybrids but investors are proceeding with caution as the security generally carries significant risk."
Despite current figures, La Greca said that the new trend was likely to reverse off the back of the government announcement on superannuation changes.
"The continued decline in SMSF contributions this quarter is likely to be due to speculation at the time on proposed superannuation changes," he said.
"We expect… contribution levels to start rising again; the number of financial asset loans also decreased by 16.9 per cent for the quarter."
AUTHOR
Hope William-Smith
Hope is a journalist with Super Review. She has previously worked across a range of business and lifestyle titles. Hope has a degree in International Relations and joined the Super Review team after completing a Masters in Law, Media and Journalism.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
