SMSF managed funds allocation grow
Managed funds have been increasing as a proportion of assets in self-managed superannuation funds (SMSFs) over the past four years, according to Graeme Colley, ING Australia superannuation strategy manager and technical manager for Super Concepts.
A survey by Super Concepts found the average SMSF increased its allocation of managed funds from 21.07 per cent in 2004 to 22.36 per cent in 2007.
“We are still seeing a quarter of the average SMSF portfolio invested in managed funds, which is quite a reasonable level of allocation,” Colley said.
Super Concepts also found there has been a decrease in cash, including fixed interest investments, held by SMSFs over the past four years, falling from 18.99 per cent to 18.58 per cent in the period.
This too represents a “reasonable level of allocation” to cash by SMSFs despite “the minister (Nick Sherry) recently saying there is too much cash in SMSFs”, he said.
The survey found a decrease in direct property allocation as a trend, falling from 3.98 per cent in 2004 to 3.26 per cent in 2007.
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