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SMSFs still 'playing it safe' with equities

Katarina Taurian
05 November 2013 — 1 minute read

SMSF trustees are still “playing it safe” with equities, with new research from CMC Markets Stockbroking finding trustees hold only four different types of securities on average.

The analysis of CMC Markets Stockbroking’s SMSF clients also found Australian SMSF trustees have a “strong” leaning towards the blue chip shares within the ASX 200.

“With interest rates at historic lows, it’s no surprise the largest proportion of asset allocation for Australia’s SMSF sector is now listed shares,” said Andrew Rogers, head of CMC Markets Stockbroking.


Despite geographical variations, Mr Rogers said the proclivity for “big name stocks” is a constant factor.

“Our analysis found that SMSFs on the eastern seaboard showed a particular preference for financial and bank stocks whilst SMSFs in WA were more likely to hold energy and material stocks. Queenslanders were heavier in stocks across foods and staples such as Woolworths and Wesfarmers,” said Mr Rogers.

However, Mr Rogers questioned whether SMSF trustees would seek to increase the number of companies represented in their portfolios, given energy, banking and material stocks are already priced high.

“If this does occur, the potential volumes we’re talking about may have a material effect on pricing and the weightings of the ASX 200 benchmark. So it’s a space we’re watching with great interest,” he said.

SMSFs still 'playing it safe' with equities
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