Research shows SMSFs moving back to cash
SMSF investors are looking to traditional safe havens as equities continue their volatile run, according to new data from one SMSF service provider.
Investment in cash and term deposits rose by 2.7 per cent to 19.9 per cent in the March quarter of this year, compared with the December quarter of last year, according to a quarterly survey of OneVue SMSF investors.
“The timing of this jump coincides with challenging equity market conditions, with a major fall in equity markets last August, followed by an increase in volatility from December to February,” said OneVue's head of product and transactions, Brett Marsh.
“All investors are reacting cautiously amid these global shifts and SMSF investors are no exception,” he added.
Cash and term deposits are now the fourth-biggest asset class in investments held by OneVue’s SMSF investors.
According to OneVue’s data, managed funds (unitised trusts) reached 28.74 per cent in the 12 months to the end of the March quarter this year, compared to 23.09 per cent in the March quarter last year.
Separately managed accounts rose to 25.14 per cent in the same period, while listed shares dropped to 20.91 per cent, down from 26.42 per cent.
Further, direct property also fell to 7.85 per cent, down from 9.37 per cent over the past year.