SMSF equity investments surge

Australian self-managed superannuation fund (SMSFs) investors showed surging interest in equity investing in 2017, according the new data from nabtrade.

Investing in international shares, domestic exchange traded funds (ETFs), mFunds and partially paid shares were the most popular new investment choices made last year.

According to nabtrade’s data, which looked at the equity trading patterns of SMSFs over 12 months, SMSF investors almost tripled their investment in mFunds, more than doubled that in ETFs and partially paid shares, and increased investment in preferences shares by 34 per cent.

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SMSF investors also showed greater appetite for international trading, which grew by nearly 100 per cent last year. US equities and US ETFs were the most traded equity instruments on international markets for the year.

In the same time period, SMSFs cooled on investing in floating rate notes and options.

“The analysis shows that investors are getting comfortable with the more exotic equity instruments in that market and are prepared to spread risk. Low levels of volatility and the strong performance of domestic and international markets gave investors confidence to look for new opportunities,” Gemma Dale, NAB director of SMSF and customer behaviour said.

Dale pointed to a desire in SMSF investors to diversify their portfolios and access high growth sectors in America as a key reason international trading surged.

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