Recent analysis into SMSF investors has revealed a marked and continual move out of cash, with unitised trusts and listed trusts receiving positive flows.
The March quarter results for OneVue’s SMSF holdings revealed cash and term deposits experienced the biggest movement, dropping 3.58 per cent from the previous quarter to 21.47 per cent.
This was followed closely by the 2.67 per cent increase in unitised trusts, which now formed 16.50 per cent of holdings.
Listed trusts also experienced positive growth, with a 1.02 per cent lift in allocations, increasing to 3.20 per cent.
OneVue head of platform strategy, sales and service David Storm said the rotation from cash and term deposits into growth assets would continue to be the key trend.
“It’s been driven broadly by the diminishing returns from cash and the strong returns from growth assets, particularly equities,” Storm told selfmanagedsuper.
“Unitised trusts saw a significant increase and where we’re seeing some of that is into international assets as they’re delivering strong returns, so we’re seeing a little rotation out of local markets into global markets, after Australian listed shares had a small decrease.”
The attraction of listed trusts was also a trend to watch, he said.
“We see the increase in listed trusts as very interesting and a positive, with our membership of the Australian Securities Exchange’s mFund Settlement Service and the capability for SMSF trustees to buy wholesale managed funds directly on the market very soon,” he said.
“We’re seeing that as something that encourages us as we go forward into the mFund initiative.”
The results also found direct property increased by 0.68 per cent to 6.06 per cent from the previous quarter.
“Because we are an SMSF asset administrator capable of administering property assets, we’re not seeing a significant uplift in direct property,” Storm said.
“There is talk around SMSF trustees engaging in limited recourse borrowing arrangements to purchase residential property, but we’re still not seeing it.”
