POWERED BY MOMENTUM MEDIA
SMSFs hold nerve during volatility
Self-managed superannuation funds (SMSFs) were the largest net investors in the ASX Top 20 during 2016 but were taking a more conservative stance since the 2016 Federal Budget super change announcement, according to CommSec.
A CommSec analysis found SMSFs were also the most active investors in the retail segment, trading on average 30 per cent more than non-SMSFs.
Commonwealth Bank head of SMSF customers, Marcus Evans, said over the past two years, SMSFs had been more likely to trade during periods of market volatility than non-SMSFs.
"While SMSF trading volumes during 2016 remained on par with 2015, our analysis shows a trend towards a smaller deal size. The beginning of this trend correlated with the Budget announcement, suggesting SMSFs were more cautious with their investment strategies due to the uncertainty," Evans said.
"As investors waited to see whether the proposed changes would be legislated by parliament, they also reduced their voluntary contributions. In the September quarter, average voluntary contributions to self-managed super funds decreased significantly, from $10,750 to $3,040."
The analysis also found that SMSFs were moving towards the mid to small cap market.
"While SMSFs were the net buyers of the banks and resource stocks over the past 12 months, we have also seen CHESS holdings of stocks outside the ASX100 grow by three per cent," Evans said.
"One pattern that is emerging is the move from ETFs to direct shares when the market spikes down and specific shares become attractive from a valuation perspective."
SMSFs also made up 50 per cent of hybrid holdings in CommSec and in total these had increased by 18 per cent in the period form August 2015.
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
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment