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Strong use of listed investments in SMSFs

SMSFs used a much broader mix of listed investments compared to personal investors, a recent paper from the ASX found.

The “Australian Share Ownership Study 2014” highlighted the incidence of share ownership among the population and offered insights into the attitudes, knowledge and behaviour of retail share market investors in Australia.

The study found most retail investors invested personally rather than going through an SMSF or company structure, nevertheless those investment vehicles were increasing in popularity.

It said it would be worthwhile monitoring the trend, particularly whether investing through an SMSF or company structure affected investment strategy, as the indications were that SMSFs and company structures used a broader mix of listed investments than personal investors.

Specifically, use of other listed investments, particularly options, Australian real estate investment trusts, listed investment companies and exchange-traded products, was strong in SMSFs in 2014.

Managed funds were less popular than in previous years among SMSF owners.

“ASX has seen greater interest from investors in diversifying their portfolios in recent years and we are focused on providing the products and services our clients want,” an ASX spokesperson told selfmanagedsuper.

“We’re building an investment supermarket by actively expanding the range of investment choices, such as Australian government bonds and unlisted managed funds [via] mFund.

“We’re always interested in hearing about investors’ experiences and will continue to encourage this feedback.”

The findings revealed 6.48 million Australians, or 36 per cent of the adult population, were invested in the Australian share market either directly or indirectly in 2014.

It did not measure share ownership through superannuation, other than via SMSFs.

The national study was conducted from September to November last year with a randomly selected sample of over 6400 adult Australians.

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