Self-managed superannuation funds (SMSFs) were the largest net investors in the ASX Top 20 during 2016 but were taking a more conservative stance since the 2016 Federal Budget super change announcement, according to CommSec.
A CommSec analysis found SMSFs were also the most active investors in the retail segment, trading on average 30 per cent more than non-SMSFs.
Commonwealth Bank head of SMSF customers, Marcus Evans, said over the past two years, SMSFs had been more likely to trade during periods of market volatility than non-SMSFs.
“While SMSF trading volumes during 2016 remained on par with 2015, our analysis shows a trend towards a smaller deal size. The beginning of this trend correlated with the Budget announcement, suggesting SMSFs were more cautious with their investment strategies due to the uncertainty,” Evans said.
“As investors waited to see whether the proposed changes would be legislated by parliament, they also reduced their voluntary contributions. In the September quarter, average voluntary contributions to self-managed super funds decreased significantly, from $10,750 to $3,040.”
The analysis also found that SMSFs were moving towards the mid to small cap market.
“While SMSFs were the net buyers of the banks and resource stocks over the past 12 months, we have also seen CHESS holdings of stocks outside the ASX100 grow by three per cent,” Evans said.
“One pattern that is emerging is the move from ETFs to direct shares when the market spikes down and specific shares become attractive from a valuation perspective.”
SMSFs also made up 50 per cent of hybrid holdings in CommSec and in total these had increased by 18 per cent in the period form August 2015.
