The amount of cash held in SMSFs has also fallen for the first time since 2010, according to the Vanguard/Investment Trends April 2013 SMSF Report.
As at April, 7 per cent of the $496 billion SMSF industry was invested in managed funds – up from 6 per cent in last year’s report.
Forty-five per cent of SMSF assets are now invested in direct shares (outside of managed funds), which is up from 41 per cent last year.
The amount of money invested in 'cash' type investments now sits at 26 per cent of SMSF assets, or $140 billion – down from 28 per cent in April 2012.
Of the $140 billion invested in cash, the SMSF trustees surveyed said that 33 per cent, or $46 billion, represented “excess cash” (ie, funds that would otherwise be invested in ‘riskier’ assets if market conditions were more favourable).
In other words, $94 billion in cash within SMSF is likely to stay where it is, according to Investment Trends senior analyst Recep Peker.
Asked where they eventually planned to invest their ‘excess cash’, 83 per cent of the trustees surveyed said some of it was destined for direct shares.
The average SMSF is invested in 18 shares within its direct share portfolio, according to the Investment Trends research.
Sixty-eight per cent of trustees said they were planning to invest in ‘blue chip’ shares over the next 12 months, while 33 per cent were eyeing high-yielding shares.
Intentions to invest in term deposits have fallen sharply compared with last year – sitting at 21 per cent of trustees compared with 33 per cent in April 2012.
The SMSF sector represents one-third of the entire superannuation sector at just under $500 billion, and it is the largest single sector, with retail funds sitting at $415 billion, or 26 per cent of the industry.
Industry funds account for 20 per cent of the superannuation market, while public sector funds make up 16 per cent, according to Investment Trends.
The Investment Trends survey was based on 1,927 responses from SMSF trustees.
