Business News

No big jumps in SMSF allocations

Little had changed in SMSF allocations over the past 12 months, according to statistics from SMSF software specialist BGL.

Data extracted from Simple Fund 360 compared portfolio allocations from 20 June 2014 to 20 June 2015.

It revealed the average member asset balance per fund was $235,439 this year compared to $228,599 last year.

In terms of asset allocation, the largest categories were cash and term deposits sitting at 32.30 per cent this year, increasing slightly from 31.69 per cent in 2014, and listed securities making up 34.92 per cent from 32.78 per cent.

Real property also experienced an increase from 11.40 per cent in 2014 to 11.86 per cent in 2015.

Overall, the changes were small, BGL said.

“I see a lot of talk in the press that SMSFs are supposedly investing in this or supposedly investing in that,” BGL managing director Ron Lesh said.

“However, this does not seem to be what statistics are telling us.

“The single database design of Simple Fund 360 and the big data tools provided by Amazon Web Services makes it easy for BGL to extract industry data.”

Furthermore, an interesting statistic to come out of Simple Fund 360 highlighted the next breed of SMSF administrators.

BGL was seeing many SMSF administrators with five to 10 funds entering the market, Lesh said.

“BGL has built its business by supporting both small and large SMSF administrators,” he said.

“Our pricing for Simple Fund 360, where everything can be purchased in lots of five, was specifically designed with this in mind.

“Our philosophy has always been ‘from little things big things grow’ and we encourage businesses to invest in SMSF education and technology to build their SMSF businesses.

“I would never be so arrogant to say, ‘Don’t become an SMSF administrator because your business is too small.’”

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