Invest
Australians diversify investments following downturn
Market uncertainty has driven SMSFs to reduce their exposure to equities and diversify into new assets classes, according to a recent survey.
Australians diversify investments following downturn
Market uncertainty has driven SMSFs to reduce their exposure to equities and diversify into new assets classes, according to a recent survey.
Over the 2016 financial year, a survey by SMSF administration company SuperConcepts found investments in Australian and international shares dropped 2.6 per cent and 1 per cent respectively.
Speaking at an event in Sydney, AMP Capital’s head of SMSF and self-directed wealth Tim Keegan said investors see the current economic landscape as a “lower for longer” environment.
“Trustees are telling us that they’re looking for alternate investment classes that they couldn’t invest in themselves and as such we are seeing growth in property, and especially commercial property,” Mr Keegan said.
“Commercial property is still paying around 7 per cent yield, and with term deposits at 2 per cent or less as of yesterday, it’s unsurprising that investors are finding real assets an attractive alternative.”
According to SuperConcepts executive manager technical & strategic solutions Phil La Greca, the move is a reflection of increasingly cautious investors.
“There’s been an increasing number of investors moving into property and cash, suggesting they are looking to reduce their exposure to the stock market, which experienced periods of higher volatility during the period,” Mr La Greca said.
Despite declining cash rates, investors have not been deterred from cash holdings, which have risen from 17 to 18 per cent of portfolios over the financial year.
“We’ve seen trustees increase the amount of cash they have invested in short-term term deposits, climbing from 4.7 per to 5.5 per cent over the year,” Mr La Greca said.
The ongoing uncertainty surrounding changes to super was blamed for particularly low levels of contributions, with the 2016 June quarter average experiencing a 38 per cent reduction on last year.
“It was the lowest June quarter we’ve ever seen in terms of contributions,” Mr La Greca said.
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
