SMSF asset growth sluggish for Sept quarter
Total net Australian and overseas assets in SMSFs have seen a relatively minor increase during the September quarter based on estimates by the ATO.
The ATO SMSF statistical report for September 2014 showed a $953 million increase in total SMSF net assets during the September quarter.
This was well below the $11.3 billion or 2.12 per cent increase in net assets during the previous quarter.
It was also less than the $25.5 billion or 5.13 per cent rise in net assets during the September quarter in 2013.
SMSF Professionals’ Association of Australia director of technical & professional standards Graeme Colley said the slow growth was not a concern and should be expected given the recent performance of share markets.
Mr Colley said he did, however, consider the slight reduction in the asset size of funds with $500,000 or less an interesting statistic, compared to funds with an asset value of $500,000 or more which saw increases in asset size.
“What we’re seeing now is more higher-value SMSFs, and that trend has been going on for the last four years,” he said.
“It may be that people with larger balances have different investment portfolios, and have picked up the better value in the market.”
The statistics also showed a $986 million or 5.08 per cent increase in real residential assets cent in the six months to the end of the September.
“I think the increase there is based on mainly the market increase,” said Mr Colley.
“In the capital cities, particularly Sydney and Melbourne there has been quite a considerable increase in the value of real estate and I think in part the [statistics] reflect that.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.