Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

SMSF investors re-thinking cash

More than half of the SMSF trustees in a recent survey have admitted they are dissatisfied with the performance of their cash investments, with a third planning to reallocate funds in the next year.

The research, conducted by CoreData on behalf of Zurich, involved 505 respondents and found that 51 per cent of SMSF trustees were dissatisfied with the performance of their cash investments.

Almost a third of those dissatisfied, or 32.3 per cent, said they intended to allocate away from cash within the next 12 months.

According to Zurich, investors may be looking to allocate this money offshore instead, with the survey indicating that one in seven SMSF trustees plans to increase their exposure to international equities over the next 12 months.

Advertisement
Advertisement

However, the report also reveals some barriers to overseas investment, said Zurich, with 51.5 per cent of SMSFs saying they would consider reallocating cash to international equities if they had access to appropriate advice and education.

“Just over one third, or 35.2 per cent, said they would prefer a financial adviser to be their source of education, compared to 13.1 per cent preferring their accountant,” said Zurich.

According to the survey, over half of the poll respondents who stated they are likely to invest in international investments within the next 12 months said they would choose a managed fund as their preferred option.

Zurich national sales manager Linda Stangherlin said it was encouraging to see there is a strong and continuing role for professional advice to help guide investment decision making, even among SMSF trustees.

“Whilst there is clearly angst amongst SMSF trustees, and indeed all investors, about the continuing low cash rates, a lack of knowledge and perceived tax and currency risks are quelling enthusiasm for global opportunities,” she said.

“However, with the right help and support from a financial adviser, the shift towards international equities, and even other non-cash sectors, would be more pronounced.”

SMSF investors re-thinking cash
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - There are so many crackdowns by the ATO it’s a wonder that anyone has enough unbroken bones on which to walk.....
Anonymous - Low as in a new low for scoundrels depleting your savings?....
Bronson - I love you Brenton please write more....
The Patriot - It seems madness to lower interest rates when we know that we will need room to drop later as the economy slows on back of China slowing. If wages do.......