News – Self-Managed Super Investment Moves Slowly Out Of Cash


News – Self-Managed Super Investment Moves Slowly Out Of Cash

News – Self-Managed Super Investment Moves Slowly Out Of Cash

Self-Managed super funds are increasing direct investment by moving slowly out of cash and into more direct investment like shares (up 9.7%) as well as managed funds (up 1.6%) over the past year.

Investor daily reports –
Trustees of self-managed superannuation funds (SMSFs) now have the highest allocation to direct shares since the global financial crisis, and they have stopped selling out of managed funds. The amount of cash held in SMSFs has also fallen for the first time since 2010, according to the Vanguard/Investment Trends April 2013 SMSF Report. As at April, seven per cent of the $496 billion SMSF industry was invested in managed funds – up from 6 per cent in last year’s report. Forty-five per cent of SMSF assets are now invested in direct shares (outside of managed funds), which is up from 41 per cent last year. The amount of money invested in ‘cash’ type investments now sits at 26 per cent of SMSF assets, or $140 billion – down from 28 per cent in April 2012.

Of the $140 billion invested in cash, the SMSF trustees surveyed said that 33 per cent, or $46 billion, represented “excess cash” (ie, funds that would otherwise be invested in ‘riskier’ assets if market conditions were more favourable).

In other words, $94 billion in cash within SMSF is likely to stay where it is, according to Investment Trends senior analyst Recep Peker.

Asked where they eventually planned to invest their ‘excess cash’, 83 per cent of the trustees surveyed said some of it was destined for direct shares.

The average SMSF is invested in 18 shares within its direct share portfolio, according to the Investment Trends research.

Sixty-eight per cent of trustees said they were planning to invest in ‘blue chip’ shares over the next 12 months, while 33 per cent were eyeing high-yielding shares.

Intentions to invest in term deposits have fallen sharply compared with last year – sitting at 21 per cent of trustees compared with 33 per cent in April 2012. SourceTim Stewart, Investor Daily

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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