Retirement
SMSFs told: you’re ‘missing’ booming sectors
Based on the latest ATO statistics, one global brokerage firm says SMSF investors are allocating record amounts to Australian cash investments and ignoring potential boom sectors.
SMSFs told: you’re ‘missing’ booming sectors
Based on the latest ATO statistics, one global brokerage firm says SMSF investors are allocating record amounts to Australian cash investments and ignoring potential boom sectors.
Chairman of Invast Australia’s investment committee Gavin White said the SMSF statistical report for the June 2015 quarter shows the allocation of SMSF assets to cash and term deposits overall jumped to $157.7 billion from $155.7 billion in the March quarter.
According to Mr White, cash investments now represent 27 per cent of all SMSF assets.
International shares on the other hand represented $1.8 billion in SMSF assets or less than one per cent of all SMSF assets.
SMSF investors overall allocated $533 million to offshore managed investments and $329 million to offshore property.
Mr White stated there were two potential problems with this since they could miss out on superior returns offered by offshore financial markets, with the S&P/ ASX 200 underperforming the US stock market, and underperforming most European markets over the past year.
“SMSFs are missing out on booming sectors, such as the all-important healthcare and technology industries, for example, which aren’t well represented in the ASX/ S&P200, while they have overdosed on bank and resources shares,” said Mr White.
By not diversifying offshore, Australian investors could be missing out on currency depreciation benefits also, he said.
“Given we can expect sustained weakness from the Australian dollar, this means many SMSF investors are missing out on an important risk buffer offered by a falling local currency,” said Mr White.
RELATED ARTICLES
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
