SMSFs favour Aussie equities as inflows slide

Self-managed super fund (SMSF) investors have shown a continuing preference for Australian equities, increasing their allocation over the December quarter, but overall inflows have continued to slide, according to survey data from SMSF administrator Multiport.

The average allocation towards Australian equities rose from 40.5 per cent to 41.4 per cent, according to the survey of 1,350 SMSFs that collectively hold around $1.2 billion — a larger increase than could be attributed purely to a 3.6 per cent rise in the ASX 200 Accumulation Index, Multiport stated.

Meanwhile, average inflows dropped from $8,300 in the September quarter to $6,400 following a general financial year trend where the bulk of contributions are usually made in the quarter to 30 June, according to Multiport.

Share purchase plans and entitlement offers from companies such as Westfield, Brambles and Tabcorp Holdings saw trustees increase direct equities holdings, and SMSFs continued to have a very high weighting to the Top 20 ASX listed stocks, Multiport stated.

Overall property allocations decreased from 16.3 per cent to 15.7 per cent, and overall property continued to be dominated by direct property holdings, which make up more than three-quarters of SMSF property assets. Poor performance in listed property funds, managed funds and syndicates saw allocations decrease to 3.3 per cent.

There was also a slight decrease in fixed interest and international share holdings, which dropped to their lowest allocation level in 12 months and continued to be affected by a strong Australian dollar.

There was a slight increase in average cash holdings and other assets such as hedge funds, private trusts and agriculture, according to Multiport.