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Investors return to structured products

While the trend of investing in growth assets is expected to continue, investors are also moving back into other classes, namely structured products.

The June quarter results for OneVue’s SMSF holdings revealed unitised trusts jumped from 12.22 per cent to 13 per cent over the three months.

Non-residential property grew from 4.38 per cent to 4.67 per cent and investments into loans increased from 4.69 per cent to 4.76 per cent over the period.

Separately managed accounts (SMA) achieved strong flows, increasing from 25.98 per cent to 26.22 per cent.

Allocations to listed shares dropped from 30.08 per cent to 28.89 per cent, while cash and term deposits grew slightly from 26.52 per cent to 26.65 per cent over the quarter.

International shares increased over the quarter by 0.5 per cent.

OneVue chief executive of strategic relationships Brett Marsh said while allocations into other assets went down, he was seeing more activity in those areas.

“In the managed investment side, we see people continue to be interested in the unitised trust – that’s gone up a little bit over the period and a lot of that is going to international, with the brand name fund managers attracting a lot of the flows,” Marsh told selfmanagedsuper.

“Things like SMAs almost held their ground and we continue to see just a little more movement, probably none of it really too definitive because of those market movements.

“Some of the uses of structured products, where there is inherent gearing with the products, seem to be used.”

Over the past 12 months, international equities had not grown as fast as Australian equities, however, the sector did exceed local equities in the past quarter, Marsh said.

In addition, another theme that had developed in the past year was an increase in the use of exchanged-traded funds (ETF).

“We’ve seen a very large increase in ETFs over the period and that is either to get typically international equities or enhanced cash,” Marsh said.

Property remained steady with modest increases in direct property, which was experiencing more interest from investors, he said.

“If anything else, I see the next 12 months as extremely bullish for direct property,” he said.

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