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Investors move away from listed shares

Recent analysis into SMSF data has revealed investors are continuing to retreat from the volatile stock market, after recording their lowest investment for five years in this asset class.

The June quarter examination of OneVue’s SMSF holdings found investment in listed shares dropped to 19.23 per cent, down nearly 10 per cent from two years ago and more than 3 per cent in the past year.

The listed shares category was 22.52 per cent only a year ago in the June 2015 quarter and much higher two years ago at 28.93 per cent, in the June 2014 quarter.

SMSF investments in listed shares was now at the lowest level ever recorded by OneVue, which began its records of SMSF investment in June 2011 where listed shares were the biggest asset class held by OneVue SMSF investors at 29.5 per cent.

“SMSF investors are continuing to react with caution to current volatile market conditions by turning towards cash and term deposits and managed funds,” OneVue head of product and transactions Brett Marsh said.

Currently, SMSF funds command nearly one third of Australia’s superannuation sector with a 29 per cent share of the total pool and $590 billion in funds under management.

The data also revealed SMSF investment in cash and term deposits rose to 21.07 per cent for the June quarter, up from 18.83 per cent a year ago.

In addition, unitised trusts (managed funds) rose to 28.7 per cent, up from 24.7 per cent compared to a year ago, placing it now the dominant investment vehicle category for OneVue SMSF investors, after attracting more allocations than any other groups.

Investment in separately managed accountants held steady at 25.13 per cent, compared to 24.7 per cent a year ago.

Direct property holdings also remained fairly steady at 8.61 per cent, up from 7.43 per cent in June 2015.

Marsh said advisers were continuing to access professional investment management through actively managed and passively managed trusts, in particular for asset classes such as international investments, infrastructure and alternatives.

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