The latest SMSF Under Advice report from AUSIEX found that holdings by SMSFs increased by 8.8 per cent while the number of newly established SMSF trading accounts on the AUSIEX rose 14.5 per cent year-on-year.
The report found that advised SMSFs drove most of this new account growth, rising 12.3 per cent year-on-year in overall account numbers. New self-directed SMSF trading accounts rebounded from the prior year, up 19.8 per cent.
Brett Grant, head of product, customer experience and marketing at AUSIEX, said after a surge in interest in SMSFs among younger generations during COVID-19, Baby Boomers returned to make up a stronger proportion of new SMSF accounts.
He said Baby Boomers accounted for more than 50 per cent of new SMSF accounts, both advised and self-directed.
“There was also an increase from Millennial SMSF investors, up 9.8 per cent year-on-year. This was mostly driven by male Millennials. By contrast, there was a year-on-year decline in new Generation X female SMSF accounts,” he said.
On the self-directed side, Generation X increased its share of new accounts year on year, up to over 31 per cent.
The data also revealed that Victoria reported 24 per cent growth in the number of new SMSF accounts, up from 30 per cent in 2023. NSW remained in second place, marginally increasing its share from just under to just over 25 per cent of new SMSF accounts, while Queensland also increased its share to just over one in five new SMSF accounts.
“SMSFs traded more in 2024 than they did the previous year, up 7.5 per cent (by number of trades) year on year. The increase, we believe, was in part due to increased additional interest in global equities, in particular global equity and US equity exchange traded funds (ETFs),” Grant said.
“The value of holdings also increased more for advised SMSFs than for non-advised SMSF accounts. These gains appear to have been supported by significantly more diversified holdings, across sectors and securities.”
He added that this includes an increasing allocation to ETFs, which is a stark difference from non-SMSF accounts and self-directed SMSF accounts, which prefer direct equities.
“Despite concerns about the future of the wholesale investor test, the potential Division 296 superannuation tax, compliance requirements and cost of advice concerns, SMSFs remain in favour with distinct groups of investors and advisers who value greater flexibility when it comes to growing and protecting wealth,” Grant said.
