Cash loses lustre for SMSF trustees
Self-managed super fund (SMSF) trustees’ appetite for cash has fallen further in the last quarter, with low interest rates driving investors away from the traditional safe haven, a survey shows.
Recording its fifth consecutive quarterly decline, cash investment dropped 5.8 per cent on the September quarter last year and 1.1 per cent since the June quarter this year, according to the most recent Multiport SMSF Investment Patterns survey of around 2000 funds.
With the taste for higher yields increasing, it seems cash’s losses have become Australian equities’ gain, with the asset class attracting 39.4 per cent of SMSF money compared to 37.5 per cent in the previous quarter. The equities increases were in line with the market.
Hybrids became slightly more popular as well in the last quarter, the survey showed, with a 0.2 per cent quarterly increase.
Despite remaining the prime choice for SMSF trustees, property recorded a slight decline, dropping from 18.1 per cent in the June quarter to 17.6 per cent the following quarter.
Managed funds also fell slightly, with the 0.9 per cent drop potentially linked to a lack of diversification, AMP SMSF administration head of technical services Philip LaGreca said.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
