Average self-managed super fund (SMSF) contributions have grown from $40,700 last year to $47,533 for the 2011/2012 financial year, according to the recently released Multiport SMSF Investment Patterns Survey.
And with cash holdings also increasing significantly in the June quarter (up by almost 4 per cent), head of technical services at Multiport Philip La Greca said the bulk of this year's additional contributions were made at that time – just prior to financial year end.
"We usually see people make the majority of their contributions during the June quarter as it's their last opportunity for the financial year, but this year these contributions were up considerably," he said.
According to the Multiport survey, that increase was from an average contribution inflow of $6,911 the previous quarter to $12,350 for the quarter ending 30 June, as over 50s made use of their last chance to contribute up to $50,000 in concessional contributions.
"It seems that many people over the age of 50 were keen to make use of their last chance to contribute up to $50,000 in concessional contributions before the $25,000 concessional cap was applied to all ages," La Greca said.
Commenting on favoured investments for the June quarter, La Greca said SMSF trustees were chasing quality and yield in their investments – a view reinforced by the fact that investment in the top 10 Australian shares remained stable, making up 17.5 per cent of total SMSF assets held.
"Continued market volatility caused a significant increase in cash holdings and short-term deposits, and steady investment in top 10 'brand name' Australian shares," he said.
"And with uncertainty around interest rates, longer term deposits weren't favoured this quarter."
