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SMSFs eyeing global equities

  •  
By Tim Stewart
  •  
3 minute read

SMSF trustees are looking to increase their exposure to international equities despite a traditional bias towards high-yielding Australian blue-chips, a new report has found.

The Vanguard/Investment Trends April 2014 Self-Managed Superannuation Fund Report, released yesterday, was based on an online survey of 2,163 SMSF investors.

Speaking at the launch of the report, Investment Trends senior analyst Recep Peker said SMSF trustees are displaying much greater interest in international shares.

"SMSFs’ interest in increasing international exposure is really high at the moment compared to what we saw straight after the GFC," said Mr Peker.

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"Since 2011 … the proportion [of trustees] who say they want to increase their exposure to international has been increasing and remains high," he said. 

SMSFs that are planning their managed fund investments for the next 12 months say they will place 30 per cent of their allocation in international shares (up from 24 per cent in last year's report).

Equity funds are the most commonly preferred method of obtaining international exposure among SMSFs, according to the report.

Forty-five per cent of SMSF trustees want to use equity funds for their global share exposure, whereas 24 per cent would like to use ETFs, it said.

Mr Peker said there is a correlation between those who are interested in upping their international exposure and those who are interested in ETFs.

"Trustees are saying 'I want to hold direct international shares, but where it’s too hard I want to use ETFs instead' to get that exposure," said Mr Peker.

"There's more interest in international shares, and ETFs are seen as a great way of facilitating this exposure," he said.