Self-managed super funds (SMSF) traded more over the past year and the value of their holdings increased by 8.8%, found the SMSF Under Advice report, just released by wholesale trading platform AUSIEX.[1]
The number of newly established SMSF trading accounts on the AUSIEX platform (across both advised and self-directed segments) rose 14.5% year on year in number.
Advised SMSFs drove most of this new account growth rising 12.3% year-on-year in overall account number. There was also a rebound in new self-directed SMSFs trading accounts from the prior year, up 19.8%.
Brett Grant, Head of Product, Customer Experience and Marketing at AUSIEX, says, “We’ve seen advised SMSF accounts grow in number last year, and continue to grow at the start of this year – and trading more actively.”
After a surge in interest in SMSFs among younger generations during COVID-19, Baby Boomers returned to make up a stronger proportion of new SMSF accounts, noted Mr Grant. Baby Boomers accounted for over 50% of new SMSFs accounts, both advised and self-directed.
There was also an increase from Millennial SMSF investors, up 9.8% year-on-year. This was mostly driven by male millennials. By contrast, there was a year-on-year decline in new Generation X female SMSF accounts.
On the self-directed side, Generation X increased its share of new accounts year-on-year, up to over 31%.
Victoria reported 24% in growth in the number of new SMSF accounts, up from 30% in 2023. New South Wales remained in second place marginally increasing its share from just under to just over 25% of new SMSF accounts. Queensland also increased its share to just over one in five new SMSF accounts.
“SMSFs traded more in 2024 than they did the previous year, up 7.5% (by number of trades) year on year, found the AUSIEX report. The increase we believe was in part due to increased additional interest in global equities, in particular global equity and US equity exchange traded funds (ETFs),” notes Mr Grant.
The value of holdings also increased more for advised SMSFs than for non-advised SMSF accounts. “These gains appear to have been supported significantly more diversified holdings, across sectors and securities,” says Mr Grant.
“This includes an increasing allocation to ETFs – which is a stark difference to non-SMSF accounts and self-directed SMSF accounts which prefer direct equities.”
“Despite concerns about the future of the wholesale investor test, the potential Division 296 superannuation tax, compliance requirements and cost of advice concerns, SMSFs remain in favour with distinct groups of investors and advisers who value greater flexibility when it comes to growing and protecting wealth.”
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