POWERED BY MOMENTUM MEDIA
SMSFs diversifying asset allocations
Self-managed superannuation fund (SMSF) trustees are showing signs of embracing greater asset allocation diversification, according to the latest data released by Multiport.
The data, released this week, shows that SMSFs are reducing their exposure to the top 10 stocks and increasing investments in international equities through managed funds, according to the Multiport SMSF Investment Patterns Survey.
It found that in the December 2015 quarter, there was a significant move away from the S&P top 10 shares, which now represent 14.5 per cent of total fund assets, compared to 20 per cent in December 2014.
Commenting on the findings, Multiport head of technical services, Philip La Greca said trustees were searching for capital growth and yield outside well-known stocks.
"We've seen an increase in allocation to international equities, specifically through managed funds," he said.
"A large contributor is likely to be distributions from managed funds at 30 June being re-invested during the December quarter. Trustees are also searching for opportunities that provide more capital growth and yield."
La Greca said while this represented a positive sign of increasing diversification by SMSF trustees, it was also reflective of the under-performance of the ASX top 20 compared to the overall equity market for the period.
He said that despite the increase in international investments, the most common assets held by SMSF trustees continued to be stocks in the ASX top 20, suggesting there remained an opportunity for further diversification.
La Greca noted that despite the cooling property market in late 2015, SMSF property borrowing marginally increased to 17.5 per cent in the December quarter compared to 16.5 per cent during the previous quarter among the survey base.
"One-third of survey respondents who own property in an SMSF had a gearing arrangement in place during the period," he said.
"The average property loan amount was $298,000, an increase from $273,000 in the first quarter of 2015, which is reflective of the rise in property prices during the year."
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
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
