SMSFs break stereotype
Self-managed superannuation fund (SMSF) investors trade shares twice as often and hold more diverse portfolios than retail investors, according to new analysis released by CommSec.
The CommSec analysis has revealed data that has found that SMSFs place double the amount of equities trades on average compared to non-SMSF holders.
Commenting on the findings, Commonwealth Bank Head of SMSF Customers, Marcus Evans, said that while many people viewed SMSF accounts as dormant with a lot of long-term investments, the CommSec data showed they were very active in the equities space.
He said that in terms of portfolio make-up, SMSFs have a far more diversified portfolio, holding an average of 14 different securities in their portfolio, compared to just seven for the average equities investor.
"SMSF accounts tend to be far more diversified than those of retail investors, recognising that diversification is an important part of reducing risks and managing a robust portfolio over the long-term," Evans said.
An analysis of CommSec SMSF trading patterns for the week ending 28 August 2015, which included the biggest single day drop since the GFC, shows an increase in total trade volumes, with overall net buying among SMSFs.
"The increase in trading volumes favouring buying during recent volatility shows investors are constantly keeping an eye on the market and dispels the myth that SMSFs are conservative investors," Evans said.
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
