Pooled investments favoured

SMSF pooled investments

SMSFs are using pooled structures for around a third of their investments according to an analysis of underlying funds from one administration provider.

SMSFs are investing around 30 per cent of assets via pooled investments, with their use concentrated around access to international markets, according to data released by SuperConcepts.

The technology and administration provider released the data as part of the relaunch of its quarterly SMSF Investment Patterns Survey, with the current findings, drawn from 4500 funds administered by SuperConcepts, covering the period until March 2022.

SuperConcepts technical and strategic solutions executive manager Philip La Greca said the quarterly analysis of the firm’s clients’ investments found almost one in three dollars invested by SMSFs was through pooled structures.

“The highest usage is in international sectors, with over 75 per cent of international equities and international fixed interest exposure through managed funds and exchange-traded funds (ETF),” La Greca said.

“This is reflected in the top 10 pooled vehicles where eight are international products and four are ETFs.”

La Greca added the analysis also identified the differences in SMSF investment allocations compared to that of Australian Prudential Regulation Authority (APRA)-regulated funds.

“Cash is higher but, given the larger proportion of pension members, this is not really unexpected,” he said.

“Equities exposure is almost identical, but the split between domestic and international highlights the limited ways SMSFs, and other retail investors, can access overseas markets.”

He noted that while SMSFs appear to have a greater exposure to real property at 16 per cent of assets versus 8.5 per cent of assets in an APRA-regulated fund, the latter figure may be higher.

This was because assets such as airports, toll road and ports were classified as infrastructure rather than specialist property by APRA funds and where they were 9 per cent of assets compared to 4.9 per cent for SMSFs.

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