SMSF contributions down
A new survey shows average self-managed super fund (SMSF) contributions were down in the last financial year.
The latest Multiport SMSF Investment Patterns Survey, which analyses around 1,950 funds, found average contributions for the 2013 financial year were down $12,000 to $35,200.
The average contribution in the 2012 financial year was $47,500.
However, AMP SMSF administration head of technical services Philip LaGreca said trustees have not been passive in their investment choices.
“A significant amount of cash holdings moved into the fixed interest sector early in the financial year, with cash down almost 2.7 per cent and fixed interest up 2.6 per cent,” La Greca said.
“The timing of these investments was heavily influenced by the reductions in official interest rates and sentiment about future movements and new capital raisings via bank-issued subordinated notes,” he added.
“The allocation to Australian shares was up 0.8 per cent to 37.5 per cent, slightly higher than expected from normal growth in the market. This was mostly driven by the significant weighting that direct Australian shareholders have in the top 20 stocks, which outperformed the All Ordinaries.”
The decline in overall cash holdings continued for another quarter, with a 1.5 per cent drop to 21.9 per cent during the June quarter of 2013, the survey showed.
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