Investments, Strategy

Research debunks SMSF cash myth

The latest quarterly analysis of SMSF investments has revealed a significant decrease in cash holdings, following the massive spike in cash contributions to super funds during the last quarter of the 2017 financial year.

The SuperConcepts survey, covering 2600 SMSFs representing assets of $3.6 billion, found cash and short-term deposits dropped from 19.8 per cent to 17.3 per cent from 30 June 2017 to 30 June 2018.

“It tells us that changes to the contribution rules saw many trustees use their last opportunity to make large non-concessional contributions to super,” SuperConcepts SMSF technical and strategic services executive manager Phil La Greca said.

“These monies were then mainly invested in the Australian equities sector.

“When stripping out performance, the cash allocations to Australian equities increased by 1.5 per cent due to investment from these cash amounts.

“This really debunks the myth that SMSFs just put money in the bank and leave it there because we now have clear data showing they are active investors.”

La Greca said the data confirms SMSFs are drawn to wanting to have control over their investment strategies and are highly engaged in putting their money where they want it.

SuperConcepts will release the full report in the coming weeks.

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