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SMSF global equities investment sees ‘dramatic increase’: UBS

Miranda Brownlee
20 July 2015 — 1 minute read

Improved access and awareness of foreign companies has seen a substantial increase in the level of SMSF investment in global equities, according to UBS.

Speaking to SMSF Adviser, UBS Wealth Management Australia's David Sokulsky said that while allocations vary greatly between different SMSF members because of their varying risk profiles, he estimates the average allocation is now around 15 per cent.

“Certainly in the past five years it’s increased dramatically,” he said.


“I think it has a lot to do with the fact that technology is becoming increasingly prominent and people around the world are more accustomed to companies like Google and Apple and therefore want exposure to these companies."

Mr Sokulsky said new technology has also allowed SMSF trustees, in some cases, to access global equities as easily as they can domestic companies, depending on the amount of assets held within their SMSF.

However, despite increased allocation to global equities, SMSFs' allocation to the asset class remains too low.

“A 15 per cent allocation is probably underweight to what our asset allocation indicates it should be for an individual investor,” he said.

Platinum Asset Management investment specialist Douglas Isles agrees the current exposure of SMSFs is too low, particularly among unadvised SMSF trustees.

“The resources ‘super cycle’ appears to have passed us by and people are not getting exposure to a number of the major growth drivers of the world,” he said.

“We think there are bigger risks in having too much money in Australia than having a significant allocation to a global portfolio.”

Miranda Brownlee

Miranda Brownlee


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.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

SMSF global equities investment sees ‘dramatic increase’: UBS
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