The survey covers around 2250 funds, a sample of the SMSFs Multiport administers and the investments they held at 31 March 2015. Funds are administered on a daily basis which ensures data is based on actual investments and is completely up to date. The assets of the funds surveyed represent just under $2.6 billion.

Click here to read the report.

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The quarterly Multiport SMSF Investment Patterns Survey covers around 1,900 funds, a sample of the SMSFs Multiport administers, and the investments held at 31 December 2012. The assets of the funds surveyed represent approximately $1.7 billion. 

AMP SMSF Administration Head of Technical Services Philip LaGreca said cash holdings fell 1.9 per cent to 24.5 per cent in the December quarter, compared to the previous September quarter. 

“With cash losing its appeal in the wake of two interest rate cuts for the quarter, SMSF trustees are looking for a new ‘safe’ home for their investments. 

“About one third of cash outflows moved into fixed interest holdings – up 0.6 per cent for the quarter to 11.2 per cent of total SMSF investments – with trustees locking in higher interest rates through longer term deposits,” Mr LaGreca said. 

The survey shows the remaining cash outflows were used to pay deposits on direct property holdings.

“There’s been a surge in direct property investment, up 1.1 per cent for the quarter and even more significant is the increase in the use of limited recourse borrowing arrangements, up 5 per cent on last quarter to 29 per cent of SMSF direct properties,” Mr LaGreca added. 

While overall asset allocation to Australian equities increased just one per cent for the quarter – on par with the increase in the All Ordinaries– growth was higher than expected for SMSF trustees during the calendar year, as their holdings tend to be concentrated on the ASX Top 20 companies. 

Mr LaGreca said the top 20 Australian shares outperformed the All Ordinaries by 22 per cent this calendar year, resulting in increased allocation to Australian equities for SMSFs across the calendar year. 

Average SMSF contributions for the September quarter decreased to $6,585 compared to $8,731 for the previous quarter.  This is in line with the trend shown during previous years where the December and March quarters generally show the lowest inflow of new contributions for the year.

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Overall asset allocation to Australian equities was up only 0.1 per cent to 31.8 per cent, despite the All Ordinaries being up 6.5 per cent in the same period. 

The quarterly Multiport SMSF Investment Patterns Survey covers around 1,900 funds, a sample of the SMSFs Multiport administers, and the investments held at 30 September 2012. The assets of the funds surveyed represent approximately $1.5 billion.

AMP SMSF Administration Head of Technical Services Philip LaGreca said: “Despite strong performance in Australian equities for the quarter, it would seem that experience of prior volatility is making SMSF trustees cautious about further investments in this asset class.” 

The trend wasn’t isolated to Australian shares, with exposure to international equities also increasing just 0.1 per cent to 7.7 per cent, despite an increase of 5 per cent on the MSCI World Index for the same period.  

“Investment in international shares also appears soft due to the strengthening of the Australian dollar over the quarter which put a dampener on the offshore performance,” Mr La Greca said. 

Average SMSF contributions for the September quarter decreased to $8,731 compared to $12,350 the previous quarter which is in line with the trend shown during previous years where the bulk of contributions were generally made during the June quarter. 

The overall allocation to cash for the quarter decreased by 0.2 per cent, mainly due to a decline in the popularity of short-term deposits.  In contrast, the 12 month period has shown an increase in term deposits from 8 per cent in September 2011 to 11.1 per cent in September 2012.  

Fixed interest holdings, however, decreased for the 12 month period by almost 25 per cent to 10.6 per cent, due to numerous cuts in official interest rates for the period. 

“Cash allocations have remained fairly steady since last quarter.  In the last 12 months, trustees are trying to get more bang for their buck by significantly increased use of short-term term deposits.  

“The five interest rate cuts in the last 12 months has reduced the attractiveness of fixed interest, which saw a sharp fall in allocation to this asset class in the quarter,” Mr LaGreca said.

Trustees were not deterred by new stringent rules, introduced over a year ago, for investing in collectable items and personal use assets.  

“Although collectables represent 0.05% of the overall SMSF asset allocation, the asset class showed a considerable increase over the last few quarters. Numerically the number of collectables has increased by 22% and based on value by 20%.  

“These trustees are either confident they will be able to meet the new rules, or have not yet addressed the requirements that will apply after 30 June 2016.  Increased investment in some physical commodities, such as bullion, suggests some clients are still looking for an alternative to cash,” Mr LaGreca said. 

To read the Multiport SMSF Investment Patterns Survey, click here.

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Multiport Head of Technical Services Philip La Greca said the bulk of this year’s additional contributions were made in the June quarter.  Average contribution inflow for the quarter increased to $12,350, compared to $6,911 the previous quarter, as over 50s made use of their last chance to contribute up to $50,000 in concessional contributions.

“We usually see people make the majority of their contributions during the June quarter as it’s their last opportunity for the financial year, but this year these contributions were up considerably.

“It seems that many people over the age of 50 were keen to make use of their last chance to contribute up to $50,000 in concessional contributions before the $25,000 concessional cap was applied to all ages,” Mr La Greca said.

Cash was the favoured investment in the June quarter, up 4 per cent, while investment in Australian shares decreased by 3 per cent, exceeding the decrease in the All Ordinaries for the quarter.  Investment in the Top 10 Australian shares remained stable, making up 17.5 per cent of total SMSF assets held.

Mr La Greca said SMSF trustees this quarter were chasing quality and yield in their investments.

“Continued market volatility caused a significant increase in cash holdings and short term deposits, and steady investment in top 10 ‘brand name’ Australian shares.  With uncertainty around interest rates, longer term deposits weren’t favoured this quarter,” Mr La Greca continued.

The quarterly Multiport SMSF Investment Patterns Survey covers around 1,900 funds, a sample of the SMSFs Multiport administers, and the investments they held as at 31 June 2012.  Funds are administered on a daily basis which ensures data is based on up-to-date actual investments.  The assets of the funds’ surveyed represent approximately $1.4 billion.

Click here to view the Multiport SMSF Investment Patterns Survey.

20 July 2012

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The solution, called the Crystal Wealth Managed Account Service, provides Crystal Wealth’s clients with eight model portfolio options or a tailored discretionary mandate according to a client’s specific needs.  The service includes daily portfolio management, comprehensive administration and reporting services.  

Multiport CEO John McIlroy said: “Our unified managed account service allows advisers to offer their clients efficient administration of a wide range of portfolio services.  There is no doubt there’s increased interest in the managed account space and this type of solution can be ideal for specialist practices that have higher net worth clients and SMSFs as a core capability.” 

Clients using the Crystal Wealth Managed Account Service can select from five diversified models (conservative, moderate, balanced, assertive, aggressive) and three specialist sector models (core equity, income equity, global equity) for each portfolio.  

The model portfolios can comprise any combination of cash, income securities, listed shares, ETFs and managed funds.  Alternatively, clients may opt to have a tailored portfolio built around their stated risk tolerance. 

Crystal Wealth Partners director Tim Wedd said: “Crystal Wealth provides flexible portfolio management solutions for its clients that are needs-driven, not product focused.  Our higher net worth client base has a definite preference for direct investing and we needed a managed account provider that had the capacity to work with us to build the solutions our clients want. 

“Multiport was able to offer us a fully integrated managed account and SMSF administration service and this is a vital ingredient of proper ongoing client management.  Multiport demonstrated to us that it had the necessary personnel, experience and systems to allow us to build client solutions that meet their service expectations.” 

The Crystal Wealth Managed Account Service allows for expanded reporting across a wide range of assets including shares, term deposits, managed funds, direct property, collectibles and other non-standard assets.  This means SMSF clients also receive integrated daily administration and reporting to deliver a fully compliant solution with online access at all times.

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The survey covers around 1,800 funds, a sample of the SMSF’s that we administer and the investments they held at 31 March 2012. 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 $1.4 billion. To read the report, click here.

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The new appointment provides an additional level of professional and technical support services to finance professionals working with clients with Self-Managed Superannuation Funds (SMSFs).

“The demand for Multiport’s services continues to increase with growth in SMSFs. Our client numbers have tripled in the last six years, creating increased need for the additional advanced technical support that Marjon will help provide,” said Multiport Technical Services Director, Philip LaGreca.

Multiport is a leading provider of self-managed super and managed account administration, reporting and compliance services.

“In six years, the number of advisers and accountants we work with has also grown exponentially. Marjon’s background working with accountants is essential in understanding advisers and accountants needs,” continued Mr LaGreca.

Ms Muizer is a CPA with previous roles at PKF Chartered Accountants and worked as a Manager in Superannuation for Dixon Advisory and Superannuation Services. With increased technical services resources, Multiport is also expanding its tools and resources to clients with webinars and training, in addition to traditional professional development days.

Ms Muizer holds a Masters of International Business and a BA Business Administration degree.

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The survey covers around 1,600 funds, a sample of the SMSF’s that we administer and the investments they held at 30 September 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 September quarter saw cash holdings increase by nearly 2% and Fixed Interest assets increase around the same. Australian Shares exposure however fell quite drastically by nearly 3%. The change is a combination of:

• Dividends being paid out in this quarter contributing to the increase in cash holdings for September. Trustees seem to have not reinvested this money in the share market due to current uncertainty and have instead kept the cash in either short or longer term deposits.
• A drastic fall in the Australian share markets in the third quarter.
• International shares fell nearly 10% which is less than the market falls but this was counter balanced by the fall in the $AUD.

The overall asset allocation break-up as at 30 September 2011 was:

Cash holdings move up
Cash holdings have increased to 24.7% in September 2011, which is up 2% since the last quarter and is now at its highest level in 2 years. We have seen a minor sell off in assets as a result of current market uncertainty in the Australian Stock Exchange. Dividends were also paid out and investors seem to have either held on to the cash or placed their money into either short or longer term fixed interest investments.

The average contribution inflow for the quarter was up at $21,292 and the benefit payment outflows were significantly higher at $35,940 per fund. This affirms that the increase in cash is derived from the dividends received. Another reason for the benefit levels to have increased is due to the recalculation of member benefits and the impact of the reduced minimum pension payment discount which was effective 1 July (50 to 25%).

Australian equities exposure falls
Where trustees are using managed funds in this asset class they display a bias to specialist funds including midcap and smaller company funds. These funds have taken a much greater hit than the Top 50 blue chip stocks in the recent market downturn.

Top 10 Australian shares
The September quarter saw Origin Energy drop out of the Top 10 ASX listed stocks held by our funds. Other stocks were virtually unchanged from the previous quarter with Investors continuing their preference for blue chip stocks.

Telstra did work its way back in to the top 10, being one of the few stocks that had a price increase over the quarter. Interestingly the Top 10 shares make up 15% of total assets held and this remained unchanged over the past two quarters. If trustees are selling shares, they are not selling these Top 10 company shares.

The most commonly held ($ invested) shares at 30 September 2011 were:

1. BHP Billiton
2. Commonwealth Bank
3. Westpac
4. ANZ
5. National Australia Bank
6. Wesfarmers
7. Woolworths
8. Woodside
9. Telstra
10. Rio Tinto

International holdings
The September quarter saw International holdings fall due to market conditions. Market falls were significantly worse than the domestic market fall but countering this was the depreciation in the Australian Dollar which curbed this loss.

The split between managed funds and direct investment continues to show investors comfort in using managed funds as a preferred method of investing in overseas markets.

Property allocation
Direct Property allocation increased in this quarter to 14.5%, its highest level since December 2008. This reflects the ongoing acquisitions in this asset class and use of gearing strategies. Managed funds however remained steady at 2.3%.

As gearing within SMSF’s continues to increase in appeal, perhaps exacerbated by current share market uncertainty, trustees are turning to property and gearing. Companies are developing products to make this process easier for trustees. Multiport released a property gearing package earlier this year and have seen an increase in investment in this area in the past quarter.

Fixed Interest
This quarter saw quite a significant increase in the fixed interest exposure as investors continue to choose the security of 30 to 60 day term deposits and other fixed interest investments as they try a more cautious strategy.

Exposure to Managed Funds
The survey has again reflected an 80/20 split of investments with the direct investment approach highly favoured. The major exception is still International Shares where primary exposure is via Managed Funds. We have not yet seen a significant take up of ETF’s as a replacement for managed funds.

SMSF Trustees start utilising limited recourse borrowing arrangements
Around 16% of the funds in the survey are currently utilising a borrowing arrangement. The graph below shows the split of borrowing arrangements across direct property and financial assets at 30 September 2011.

The average property loan amount remains at around $217k compared to $238k against financial assets. We have seen an increase in loan amounts for financial assets this quarter which is predominantly due to the use of protected equity products with higher gearing ratios than is currently available for direct property.

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Multiport CEO John McIlroy said the majority of the recent growth has come from SMSFs referred to Multiport’s administration and compliance services by financial advisers, accountants and from direct clients.

“While the SMSF segment has been growing at a healthy rate we have been able to grow ahead of the curve due to the great support we receive particularly from financial advisers and increasingly from accounting practices.”

Last year, Multiport extended its SMSF services range to better engage with financial advisers who had existing accounting relationships and to provide services directly to accounting practices.

“Using Multiport’s service means accountants are able to better prioritise how they manage their clients. This means we can now work in a tripartite arrangement with advisers and accountants and the great benefit is clients will get a better service outcome,” McIlroy stated.

Multiport provides daily SMSF administration services to clients and this includes daily compliance monitoring for contribution caps, non compliant investments, pension caps and other superannuation legislation related issues. Mr McIlroy said as the SMSF market grew, Multiport’s service offering was adapting to the increasing demands from accounting businesses.

“Some practices decide they don’t have enough SMSF’s to provide in-house assistance and outsource to us, while others feel that the level of service that SMSF trustees are demanding is beyond what accounting practices have typically provided.”

“Either way we have been able to provide an appropriate solution that suits all parties,” Mr McIlroy said.

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The survey covers around 1, 400 SMSF’s that we administer and the investments they held at 31 March 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 these funds represent approximately $1.25 billion.

SMSF Trustees start utilising limited recourse borrowing arrangements

As the use of limited recourse borrowing arrangements becomes more popular to acquire assets, Multiport has undertaken new research to look at the comparison between borrowing to acquire property versus shares and other financial assets.

Around 13% of the funds in the survey are currently utilising a borrowing arrangement.  The graph below shows the split of borrowing arrangements across direct property and financial assets at 31 March 2011.

The higher weighting to direct property is not surprising as direct property has become a more popular form of investment since the legislation change in  2007 that allowed SMSFs to borrow. The average property loan amount is around $200k compared to $110k against other financial assets.

Increase in International equities exposure

The March quarter saw an increase in exposure to International Equities, while all other sectors remained relatively stable. In the March quarter there was a 23% jump in International equity exposure. Exposure to Australian Equities decreased slightly to 41 % at 31 March 2011, down .4% from the December quarter.

Fixed Interest holdings continued to decrease, with allocations at their lowest point since December 2009.

The overall allocation to property increased from 15.7% to 16.1%, despite a 1% decrease in exposure to Listed Property, Managed Funds & Syndicates, suggesting that SMSF trustees may be taking a more direct approach.

The asset allocation break-up at 31 March 2011 was:

Source: Multiport Pty Ltd

Cash holdings remain stable

Cash holdings decreased slightly to 21.8% in March 2011, down 0.1% from the December quarter.

The average contribution inflow for the quarter was $5,900, compared to benefit payment outflows of $14,500 per fund.

Although cash outflows exceeded contribution inflows, the quarter saw cash holdings boosted by post 31 December distributions and half yearly dividends and therefore provided a stable cash holding outcome.

Australian equities exposure steady

Source: Multiport Pty Ltd

Again we have seen the preference of SMSF Trustees to invest directly rather than through managed funds.

Top 10 Australian Shares

The March quarter saw Woodside Petroleum moving to number 6 in the top 10 Australian Shares, on improving oil prices and takeover speculation, Woolworths moved to ninth spot.  The most commonly held ($ invested) shares at 31 March 2011 were:

Source: Multiport Pty Ltd

SMSF’s continue to have a very high weighting to the Top 20 ASX listed stocks.  On average, these 10 stocks represent 16.6% of all SMSF assets showing the reliance on the four banks and the big miners.

International holdings

The March quarter saw International holdings increase to their highest allocation since December 2007.  International holdings at 31 March 2011 were up 1.7% from the previous quarter to 8.8%.  An appreciating Australian dollar could continue to have a counter effect on the performance of the sector so an increase of this size would indicate that new money is being invested in International equities through the use of managed funds.

Source: Multiport Pty Ltd

Property allocation

Direct Property allocations decreased in the December quarter however in the March quarter we have seen allocations rise above previous quarters to 13.7%. The investments in Listed Property Funds, Managed Funds and Syndicates continue to decrease to their lowest allocation of 2.4% at 31 March 2011.

Source: Multiport Pty Ltd

Fixed Interest

Source: Multiport Pty Ltd

Exposure to Managed Funds

The survey has again revealed an 80/20 split of investments with the direct investment approach highly favoured.

Source: Multiport Pty Ltd

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