SMSF trustees are increasingly turning their attention to Australian shares, according to Multiport's recent quarterly SMSF Investment Patterns Survey.

The survey covers around 1,800 funds and is administered on a daily basis which ensures that data is current and based on actual investments.

The March quarter saw an increase in Australian shares exposure of 3.4%, while cash holdings dropped for SMSFs for the first time, quarter on quarter, since 2008, with a decrease of 4.1% to 22.9%.

Exposure to Australian shares through direct and managed funds jumped by 3.4% to 38.8% in the quarter.

Approximately, a third of the increase in Australian share exposure is the result of an increase in the All Ordinaries, with the remaining increase the result of further investments in the market, according to the report.

"We've seen the trend towards cash turn around this quarter with a significant decrease in cash holdings compared to December last year," said Multiport's chief executive officer, John McIIroy.

"While cash holdings are still higher than they were a year ago, it seems that investors are increasingly turning to Australian shares, with exposure to this asset class increasing."

"At the same time, we've seen international shares exposure reduce slightly, indicating that there's still uncertainty in the direction of offshore markets."

To get an insight into where SMSF trustees invest, Multiport undertakes a quarterly analysis of SMSF investments to look at the up to date asset allocation and investment trends which have been or are emerging.

The assets of the funds surveyed represent approximately $1.4 billion.