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BGL boss knocks back SMSF cash concerns with 140,000 funds as evidence

BGL boss knocks back SMSF cash concerns with 140,000 funds as evidence

Ron Lesh
Katarina Taurian
13 June 2018

BGL’s managing director, Ron Lesh, has used an analysis of 140,000 funds to hit back at criticism that SMSF portfolios are over-exposed to cash.

SMSF trustees have long been criticised for having significantly higher cash reserves than their APRA fund counterparts. Most recently, an Investment Trends report found that SMSFs as a sector are holding billions in “excess” cash, pointing to a lack of overall investment diversity.

However, SMSF software provider BGL found the cash balances of about 140,000 funds on its platforms paint a contrary picture.

According to BGL’s data, between March 2017 and March 2018, the cash to total investment ratio showed cash balances decreased by 0.84 per cent.

Overall, cash represents about 20 per cent of all SMSF assets, according to BGL’s data, which has been consistent with its client base for two years. Mr Lesh’s point here is he believes there has not been a significant spike in cash holdings recently.

“I keep reading media reports from so-called experts telling us SMSF cash balances are at all-time highs,” Mr Lesh said.

“That is, simply, not supported by the facts,” the MD added.

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BGL boss knocks back SMSF cash concerns with 140,000 funds as evidence
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