SMSF contributions up but trustees more defensive
Self-managed super fund contributions were up almost $7,000 on average in the 2011/12 financial year, while allocations to cash and term deposits grew at the expense of equities.
Contributions grew $6,833 on average to $47,533 while cash holdings grew from 22.8 per cent to 26.8 per cent, according to the latest Multiport SMSF Investment Patterns Survey.
Multiport technical services director Philip La Greca said the bulk of contributions came in the final quarter of the financial year as over-fifties looked to take advantage of a $50,000 cap before it was cut to $25,000 for all ages.
Holdings in Australian shares dropped from 38.9 per cent to 35.8 per cent, and in international shares from 8.7 per cent to 7.6 per cent due to continued market volatility and despite uncertainty over interest rates, according to the survey.
Holdings in term deposits of greater than one year's duration fell by more than half from 3.1 per cent of total holdings to 1.5 per cent, suggesting that those that matured were reallocated to other assets such as genuine cash and shorter term deposits, according to the survey.
Around 14.5 per cent of the 1,900 funds in the survey are currently utilising a borrowing arrangement, with around 60 per cent of those in respect of financial assets and 40 per cent for property, according to Multiport.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
