POWERED BY MOMENTUM MEDIA
SMSFs turn away from ASX20
Self-managed superannuation funds (SMSFs) are increasingly looking away from ASX20 stocks for growth investments and instead focusing on global economic trends, according to CommSec.
The CommSec SMSF Trading Trends Report found that SMSFs had been tapping into global trends, including the recent recovery in oil prices, rather than investing in ASX20 stocks that had been delivering lower returns.
They have also invested in the growing need for lithium and rare earths for battery manufacturers. This saw small resources stocks such as Galaxy Resources, Pilbara Minerals, Lynas Corporation and Artemis Resources climb.
Increased investment in Chinese-facing milk stocks, led by A2 Milk and Bubs Australia, reflected Chinese demand for Australian milk products.
Head of SMSMF customers for Commonwealth Bank, Marcus Evans, said that SMSF investors had shown gusto in their move away from the ASX20.
“Lower returns from traditional SMSF favoured stocks with household names such as Telstra, have led to SMSFs investing more capital outside the ASX20 suggesting they are willing to take on more risk to get higher returns,” he said.
“There are signs that SMSFs have made the move outside of the ASX20 with some conviction. This is illustrated by the fact that while, the average SMSF trade size has decreased over the period, the trade size of those stocks outside the ASX200 has in fact increased.”
Evans said that the shift in SMSF investment focuses could be indicative of the wider market, saying that “SMSFs are leaders in investments trends and are a good barometer on where the next wave of investments from the broader market will go.”
The report also found that SMSF investors had a growing appetite for investing directly in international shares with household names, such as Apple and Amazon.
Evans said that retail investment was an area in which, to date, SMSFs had been setting the trends. He said that he would continue watching the investment habits of SMSFs in this area closely.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
