SMSF trustees still favour cash

Self-managed superannuation fund (SMSF) trustees are continuing to exhibit caution despite stronger equity markets, according to new data released by specialist company Multiport.

The latest Multiport SMSF Investment Patterns Survey, released this week, revealed that while Australian equities continued to represent the highest allocation for the majority of SMSF trustees, there had been no significant pick-up despite the improvement in the market recorded since the middle of the year.

The survey noted that in the September quarter, the allocation to Australian equities had risen just 0.5 per cent to stand at 40.5 per cent. It added that trustees also remained closely wedded to cash and short-term deposits, with allocations remaining virtually static from the December quarter last year through to the September quarter ranging from 21.4 per cent to 21.9 per cent.

Equally, SMSF trustees had marginally lifted their exposure to fixed interest from 10.6 per cent in the December quarter last year to 12.2 per cent today.

Where property investment was concerned, the SMSF trustees remained most heavily exposed to direct property — although Multiport data suggested a preparedness to move back into listed property, managed funds and syndicates.

The Multiport data confirmed that SMSFs remained predominantly the domain of those approaching or having passed retirement age, with nearly 60 per cent of trustees aged 55 or older.