SMSF cash balances have increased in the past year but are not at an all-time high as is often suggested, according to latest research from BGL Corporate Solutions.
BGL found cash balances increased 3.35% on 31 March 2018 as compared to a year earlier.
However, the cash to total investment ratio showed cash balances have decreased 0.84% over the period, BGL managing director Ron Lesh said.
"This is certainly not a substantial increase as suggested by others in the industry and could even simply be a timing issue - Easter was much earlier this year," he said.
Overall, cash represented about 20% of SMSF assets in both 2017 and 2018.
The SMSF administration software developer looked at cash balances of the 140,000 funds hosted on its platform - in an analysis Lesh said is "reasonably representative" of the SMSF sector.
"And while I am not a great supporter of a lot of the SMSF statistical analysis bandied around by some, with our software covering 23% of all SMSFs, I think our figures are reasonably representative," he said.
Last week, a report by Vanguard and Investment Trends found the amount of cash held by SMSFs declined for the first time since 2009, coming down to $174 billion in 2018 from $184 billion the previous year.
Of this, $50 billion was considered "excess cash", meaning the level of an SMSF's assets that are currently in cash due to recent market volatility.