SMSF balance gap to close: Report

The superannuation reforms could narrow the growing self-managed super fund balance gap between male and female members, latest Class insights show.

Men typically have 37% more assets than women, and between the ages of 60 and 80 men can retire with $150,000 more, according to Class' September SMSF Benchmark Report.

Members are using contribution splitting strategies to rebalance and remain within the $1.6 million transfer balance cap.  About 29% of two member funds may need to rebalance to remain within the cap.

When it comes to asset allocation preferences, females prefer defensive assets such as debt securities, managed funds and domestic listed trusts.

Men on the other hand lean toward aggressive growth assets such as unlisted shares, unlisted trusts, non-residential real property and limited recourse borrowing arrangements, the report said.

Despite claims that SMSFs are underweight in international assets, the research shows otherwise, with international shares comprising 59% and 55.9% of the most popular ETF and managed funds investment holdings respectively.

Apple, Google and Microsoft comprise the top three holdings; one in 10 SMSFs is directly invested in Apple.

Class chief executive Kevin Bungard said: "Super reforms are having a huge impact on the SMSF industry, prompting advisers and their clients to consider strategies that will enable them to remain within the $1.6m transfer balance cap."

He added it will be interesting to see how the current SMSF gender gap may be further affected by the reforms and will be closely tracking changes over the coming quarters.

Read more: SMSFClassKevin BungardSMSF Benchmark Report
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