POWERED BY MOMENTUM MEDIA
SMSFs allocating less to cash
Self-managed superannuation funds (SMSFs) are allocating less to cash after a massive spike in the asset class in the last quarter of the 2017 financial year, with cash and short-term deposits dropping from 19.8 to 17.3 per cent from 30 June 2017 to 30 June, this year.
SuperConcepts executive manager of SMSF technical and strategic services, Phil LaGreca, said that these results, which were based on a SuperConcepts survey of 2,600 SMSFs with assets of $3.6 billion, “debunked the myth” that SMSFs just put money in the bank and leave it there.
“The data confirms that SMSFs are drawn to wanting control over their investment strategies and they are highly engaged in putting their money where they want it,” LaGreca said.
He said the spike in cash contributions at the end of last financial year was due to many trustees using their last opportunity to make large non-concessional contributions to superannuation, before reforms preventing them doing so came into effect.
Most of this money was then invested in the Australian equities sector, with, when performance was stripped out, the cash allocation to the sector increasing by 1.5 per cent due to investment from the reallocated cash.
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
Add new comment