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Wealthy Aussies shake-up investment strategies as new rules set in

investment strategies, investing

Some of Australia’s wealthiest investors, SMSF trustees, are rejecting their traditional safe haven asset choices in favour of new growth opportunities – particularly as the fallout from major superannuation reform continues. 

Following a spike in cash holdings during the 2017 financial year, SMSFs have been reducing their cash exposure in the past 12 months and boosting their allocation to Australian equities, according to a survey from AMP-owned SMSF administration business SuperConcepts. 

The recent SuperConcepts survey comprising 2,600 SMSFs with assets of $3.6 billion indicates that short-term deposits dropped from 19.8 per cent at 30 June 2017 down to 17.3 per cent at 30 June 2018.

SuperConcepts executive manager of SMSF technical and strategic services Phil La Greca said many SMSF trustees saw the change to the contribution rules as their last opportunity to make large non-concessional contributions to superannuation. You can read more about the superannuation contribution caps and how they apply to your fund here.

“These monies were then mainly invested in the Australian equities sector,” he said.

“When stripping out performance, the cash allocation to Australian equities increased by 1.5 per cent due to investment from these cash amounts.”

This is not the first sign of SMSF investors shifting their investment strategies. As reported earlier this week, CBA recently found that SMSFs have dropped another favourite in the way of blue-chip holdings, and are now turning their attention to mid and small-cap stories. 

Wealthy Aussies shake-up investment strategies as new rules set in
investment strategies, investing
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