Customers still find comfort in cash, says UBank survey
|
A UBank survey of customers with self-managed super funds (SMSFs) has revealed that a third have more than 50 per cent of their SMSF in cash.
UBank, National Australia Bank’s direct bank, found that more than half the respondents stated they have no plans to alter their current cash allocation despite improving economic conditions in Australia.
The survey revealed that a significant proportion of respondents blamed the poor performance and high fees of managed funds for their move to a SMSF, and 75 per cent said having control of their own financial destiny was the reason for their move.
“The results of this survey show that more and more people want to take tight control of their own financial destiny at a time of ongoing caution about the economic climate,” said UBank general manager Gerd Schenkel. “That caution is also reflected in the fact that people are reluctant to reduce the cash component in their SMSF — despite economic data suggesting Australia has weathered the storm relatively well.”
The survey also found that 31 per cent were optimistic about the performance of their SMSF in 2010, although 26 per cent stated they still felt cautious about the year ahead.
Some 95 per cent are not considering closing their SMSF to return to managed funds; 59 per cent like the flexibility that an SMSF provides; and nearly half claim the media influences their decisions about the allocation of their investments between cash and equities.
AUTHOR
Caroline Munro
Recommended for you
Australia’s largest super fund, AustralianSuper, has announced multiple additions to its executive leadership team to focus on global growth and innovation.
Super Review rounds up last month’s biggest people moves in the superannuation industry, including a new fund chair and a private markets head.
Investment returns for the Future Fund hit a milestone in September, adding $200 billion in value for the first time ever.
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
