SMSFs seek offshore diversification

SMSF investment in international managed funds, ETFs and direct shares continues to climb as exposure to cash and term deposits drops.

Latest analysis from SuperConcepts shows allocations to international investments rose by 1.3% in the 12 months to June 2018, climbing to 14.4% from 13.1%.

At the same time, allocations to Australian equities also increased slightly from 35.4% to 36.6% since June 2017.

In the same period, allocations to cash and short term deposits dropped 2.5% from 19.8% to 17.3%. Of this, allocations to cash accounted for 12.1% while term deposits of less than a year made up the balance.

Exposures to property also dropped slightly from 19.3% last year to 18.9% in June 2018. Of this, direct property took the biggest hit having climbed to 16.2% last quarter before dropping to 15.3% in the June quarter.

However, direct property holders utilising limited recourse borrowing arrangements has grown to 42.1% with the average property loan amount sitting at $262,000.

The most commonly held investments by SMSFs as at June 2018 were Westpac; Commonwealth Bank; Magellan Global Fund; BHP Billiton; ANZ; NAB; Platinum International Fund; CLS; Wesfarmers; and Telstra.

SuperConcepts surveyed 2600 SMSFs, representing $3.2 billion in total assets.

Read more: SuperConceptsANZBHP BillitonCommonwealth BankMagellan Global FundPlatinum International FundTelstraWesfarmersWestpac
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