SMSFs holding on to cash
Cash and deposits have been holding up in self-managed superannuation funds (SMSFs) over the past 18 months, a recent survey shows.
According to Multiport’s June survey of 1,000 of their SMSF investments, cash rose from 12.6 per cent to 28.6 per cent since December 2007.
John McIlroy, chief executive, Multiport, said that while new contributions have been flowing into funds up to the end of June this year, overall cash holdings “have remained fairly constant suggesting that some investing of cash is occurring”.
McIlroy attributed the increase partly to a “significant proportion of new contributions and rollovers staying in cash and not being invested”.
Despite an uptick in managed fund prices, exposure to international equities has continued its decline, while exposure to the Australian share market appears to be increasing. Overall, international shares allocations have dropped by almost half since December 2007, sitting at 7 per cent, down from 13.7 per cent.
Overall property allocation was also down, however, direct property is up on its December 2007 figures despite falling in the past quarter to 12.2 per cent from 15 per cent. The past quarter has seen an increase in investment in listed property and managed funds, but the 4.7 per cent figure is significantly down on the December 2007 figure of 16.8 per cent.
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