Recent analysis into SMSF investors has found a substantial outflow from listed trusts and separately managed accounts (SMA).
The June quarter results for OneVue’s SMSF holdings revealed significant movement, with listed trusts dropping by 20.07 per cent from the previous quarter to 2.46 per cent.
In addition, SMAs decreased by 15.22 per cent and now formed 23.16 per cent of holdings.
The movement out of cash into growth assets also continued, with cash and term deposits falling slightly by 2.51 per cent for the quarter.
In terms of gains, however, unlisted unitised trusts experienced the highest change with a 10.57 per cent lift in allocations, increasing to 18.78 per cent.
“The decline in support of SMAs and listed trusts is broadly a rotation from listed Australian equities to international equities held in unit trusts,” OneVue head of platform strategy, sales and service David Storm told selfmanagedsuper.
“The move is not a structural issue around listed investment companies or SMAs, but an asset allocation decision by SMSF trustees and their advisers.
“A compelling piece was the 10 per cent uplift in managed funds, probably at the expense of LICs (listed investment trusts), so investors coming out of listed trusts into unlisted trusts.”
The interest and allocation to international equities was a trend to watch, Storm said.
“From what I’m hearing from our advisers and what I’m seeing is that they’re looking to support international assets, which is still a significant part of the asset allocation,” he said.
“We’re still getting some demand for direct international assets for both SMAs and single assets, so that’s a trend and we’re certainly looking to develop capability in those two areas. It’s a priority for us.
“Direct property increased only slightly, so as it’s still at 6.55 per cent [of total holdings] … we’re not seeing any trend in our business around the reported bubble in property.”
