SMSFs miss pick-up in equities
Self-managed superannuation funds (SMSFs) have been revealed as less inclined to re-enter the market and have therefore not experienced the same up-tick in returns as conventional funds with higher exposures to equities, according to new data released this week.
The data, compiled as part of the quarterly Multiport SMSF Investment Patterns Survey, revealed that overall asset allocation to Australian equities was up only 0.1 per cent to 31.8 per cent, while the All Ordinaries was up 6.5 per cent in the same period.
AMP SMSF Administration head of technical services Philip La Greca said it seemed the experience of prior volatility was making SMSF trustees cautious about further investments in equities.
He said the trend wasn't restricted to Australian shares, with exposure to international equities also increasing just 0.1 per cent to 7.7 per cent, despite an increase of 5 per cent on the MSCI World Index for the same period.
"Investment in international shares also appears soft due to the strengthening of the Australian dollar over the quarter, which put a dampener on the offshore performance," LaGreca said.
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