The Multiport SMSF Investment Patterns Survey

From

Better performing markets see Trustees taking profits

To get a closer insight into where SMSF trustees invest, Multiport regularly undertakes an analysis of our SMSFs investments to look at the up to date asset allocation and investment trends which have or may be emerging.

The survey covers around 1,300 SMSFs that we administer and the investments they held at 30 September 2010. The data is based on actual investments and is completely up to date as we administer these funds on a daily basis.  The assets of these funds represent approximately $1.1billion.

Contributions down on previous quarter, but up on Q1/2010

The average inflow of contributions to the SMSF’s during the September quarter was $8,300 per fund.  This is down $6,400 from the June 2010 quarter; however it represents a healthy inflow of contributions for the first quarter of a new financial year.  The decrease highlights the seasonality of contributions, as members maximised contributions in the last quarter of the financial year.  A more consistent inflow in contributions is usually seen throughout the remaining 3 quarters.

The contribution inflow of $8,300 per fund is a slight increase from the first quarter of 2010, with contribution inflow increasing from $7,500 in the quarter ending 31 March 2010.

SMSF’s holding overall market allocations

There was no major change to the overall market allocations as the SMSFs continued with a balanced approach throughout the September quarter.

Exposure to equities has been maintained through the first quarter of the financial year with Australian Equities sector increasing to 40.5%. 

Trustees maintained their exposure to fixed Interest holdings with the allocations decreasing only slightly from 12.4% to 12.2%

The overall property allocation decreased from 17.0% to 16.3%, however we saw another increase in the direct property allocation to 12.8%.

The asset allocation break-up at 30 September 2010 was:

Sector 31 December 2008 (%) 31 December 2009 (%) 30

June

2010 (%)

30 September 2010 (%)
Cash and short term deposits 28.8 21.9 21.4 21.8
Fixed Interest 10.6 10.8 12.4 12.2
Australian Shares 31.9 42.6 40.0 40.5
International Shares 8.0 7.3 7.6 7.3
Property 17.8 15.6 17.0 16.3
Other (Hedge funds, agricultural funds, and private geared and ungeared trusts) 2.9 1.8 1.6 1.9
Total 100.0 100.0 100.0 100.0

Proceeds from profit taking retained as cash

Cash holdings remain stable despite a significant drop in the contribution flow in the quarter ending 30 September. The disposal of holdings in the Australian Shares sector has seen proceeds held as cash rather than being reinvested.

Trustees realise gains in Australian Shares as markets improve

Exposure to Australian shares increased marginally from 40% in the June quarter to 40.5% in the quarter ending 30 September. The increase is not as significant as would be expected given that the ASX 200 Accumulation Index rose 7% in the same period.  An index movement of this level should have seen the allocation move to near 43%, however this indicates that the last quarter saw profit taking as trustees disposed of holdings to realise gains.

  31 December 2008 (%) 31

December

2009 (%)

30

June

2010 (%)

30

September 2010 (%)

Direct Shares 22.6 36.0 33.1 33.4
Managed Fund 9.3 6.6 6.9 7.1
Total Australian Shares % 31.9 42.6 40.0 40.5

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