Self-managed super fund allocations to managed funds have jumped to record levels while fewer investors are holding shares directly, according to data OneVue has pulled from its SMSF platform.
OneVue's survey for the December 2015 quarter found that investment in managed funds (unitised trusts) by trustees rose by 5.10% to 28.19%, compared to the March quarter of 2015. This asset class is now the biggest for OneVue SMSF advice investors and also posted the largest rise over the period.
By comparison, the biggest drop was posted by listed shares which fell 4.89% to 21.53% for the December quarter 2015 over the same period. Investment in cash and term deposits also fell by 0.34% to 19.93%.
"A key outcome of the survey is investors are flocking back to managed funds - an asset class that has not recently been top of mind with trustees in SMSF assets that we administer," OneVue head of product and transactions Brett Marsh said.
"The popularity of managed funds with SMSF investors has reached the highest level ever in these surveys of OneVue SMSF clients, with more than a quarter choosing this type of asset management for the first time."
OneVue's SMSF administration service manages investment data for SMSFs that are mainly receiving professional advice.
The survey also showed that residential property loans within the SMSF portfolios fell 0.74% over the year to -5.17% of assets. Investment in direct property fell to 7.83%, down 1.54% over the period. Listed trusts rose 0.93% to 1.05% of assets.
"The reduction in traditional asset classes for SMSFs - cash, direct shares and property - and their replacement with managed funds and SMAs (self-managed assets) indicates the professionalism that has come in developing portfolios," continued Marsh.
"There's a world of difference between holding a small number of bank/mining stocks and utilising a professionally managed share portfolio via a managed fund or SMA. This level of professionalism in portfolio management is a necessity for trustees, as they are likely to weather even more years of market volatility."