SMSFs continue move from cash to shares
Self-managed super funds (SMSFs) continued a significant move from cash into equities in the last quarter of 2009, according to a survey of over 1,200 SMSFs administered by Multiport.
As the share markets moved into a significantly upward direction, SMSF trustees increased their asset allocation to equities from 32 per cent to 42 per cent in 2009, likely in part due to market performance, according to Multiport.
Cash holdings increased from 12 per cent to 29 per cent in the two years to June 2009 but dropped back to 22 per cent in the past six months.
The comparative numbers for Australian shares would suggest that SMSF trustees have not only continued to hold their direct share holdings or specialist managed funds during the poor times but increased their overall exposure, the company said.
The mostly commonly held shares were BHP Billiton and the four major banks, with a high overall reliance on the top 20 ASX listed stocks.
International equities held in SMSFs almost halved over the past two years, dropping to 7.3 per cent, while property slipped from 22 per cent to less than 16 per cent and direct fixed interest style investments also slipped slightly.
The average contribution flow for the half-year was $16,000 per fund, however, this flow of money was not being allowed to build up in cash as it had been previously, according to Multiport.
On average, each of the funds used in the Multiport survey holds around $220,000 in cash and investments, providing the option to invest further if the right opportunity arose, the company said.
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