Multiport SMSF Investment Patterns Survey June 2011


To get a closer insight into where Self Managed Superannuation Fund (SMSF) trustees invest, Multiport regularly undertakes an analysis of its SMSF investments to analyse investment trends.

The survey covers around 1,600 SMSF’s administered by Multiport and the investments they held at 30 June 2011.  Funds are administered on a daily basis, which ensures that data is based on actual investments and is completely up to date.  The assets of the funds surveyed represent approximately $1.3 billion.

Increase to cash, short term deposits and fixed interest
The June quarter saw cash holdings increase by 1% and fixed interest increase by 1.3%.  Exposure to Australian shares fell 2%. The change is a combination of reflection of:

  • Current uncertainty in the equity markets leading trustees to move funds to cash
  • A fall in the markets over the quarter.

International shares remained fairly stable this quarter as did property.

Cash holdings move up
Cash holdings increased to 22.8% in June 2011, up 1% since the last quarter, and are now at the highest level in 18 months.  Investors have been selling assets and as mentioned previously, this is likely to be a reflection of the current uncertainty prevailing in the sharemarket as investors go for a more secure investment strategy in short and long-term fixed interest.

The average contribution inflow for the quarter was $20,000 which is typical of this time of year as trustees aim to top up their contributions.  The benefit payment outflows were higher at $26,400 per fund. This affirms that the increase in cash is derived not from surplus contributions but rather disposal of investments in other sectors.

The average contribution for FY2011 was $40,700; SMSF members are still contributing strongly although this is down on the FY 2010 figure of $45,800.

Australian equities exposure steady
Again we have seen the preference of SMSF trustees to invest directly rather than through managed funds.  The June quarter saw Origin Energy move into the Top 10 ASX-listed stocks used by our funds.  Other stocks were virtually unchanged from the previous quarter with trustees continuing their preference for blue chip stocks.

The most commonly held ($ invested) shares in SMSFs at 30 June 2011 were:

1 BHP Billiton
2 Commonwealth Bank
3 Westpac
5 National Australia Bank
6 Woodside Petroleum
7 Woolworths
8 Wesfarmers
9 Rio Tinto
10 Origin

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