SMSFs missing out on global opportunities

SMSF investors are missing the boat when it comes to global equities, according to a fund management company.

Although the amount of overseas shares held in SMSFs has been increasing, it is still miniscule as a percentage of total SMSF assets, stated Insync fund managers.

Insync drew attention to the latest ATO figures for September 2013, which show direct overseas shares account for only 0.4 per cent of total SMSF assets, with the rest dominated by Australian shares, cash and term deposits and direct investment property.

Insync head of research Marcus Tuck said Australian investors are missing out on the portfolio variation that international companies can provide.

“Most local investors are missing out on diversification into world class companies in sectors that are under-represented on the Australian share market, such as technology, pharmaceuticals, food and beverage, consumer brands, aerospace and luxury goods,” he said.

“Many of those global companies have impressive track records of compounding earnings and dividends at a rate and consistency that would be difficult for all but a handful of Australian companies to achieve.”

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