AMP SMSF administration head of technical services Phillip LaGreca said cash investments fell by 5.8 per cent in the 12 months to September 2013.
Cash investments fell 1.1 per cent in the September quarter, marking five consecutive quarter falls in a row.
The figures were based on the findings of the latest Multiport SMSF investment patterns survey.
Mr LaGreca said this decline in cash is mainly due to a decrease in short-term deposits, which have fallen 0.6 per cent over the quarter.
“As term deposits mature, the trend indicates they are not being rolled over as interest rates remain low and trustees look to other assets in search of higher returns,” Mr LaGreca said. Trustees have been investing in other asset types this quarter, such as hybrids which increased 0.2 per cent from the previous quarter, he added.
While property fell slightly over the quarter from 18.1 per cent in the June quarter to 17.6 per cent this quarter, it still remains a core investment.
Direct property is, however, the preferred option, accounting for 91 per cent of all SMSF property holdings.
“Around 38.7 per cent of all direct property holders had a borrowing arrangement in place, compared to 16.7 per cent of the total number of funds who have a borrowing arrangement, showing that gearing continues to be important for those who want to access direct property,” Mr LaGreca said.
Property allocation was being “out-stripped’ however by growth in other sectors, mainly due to performance, he added.
Mr LaGreca believes allocation in Australian equities has remained roughly the same for this quarter.
While it increased 37.5 per cent to 39.4 per cent, he said this was due to changes in the market and a relatively higher concentration in the top Australian shares, which outperformed the all ordinaries.
“Over the quarter, we’ve actually seen a fall in allocations to international equities when they should have gone up in line with the indices, suggesting some trustees have reduced their exposure as a result of uncertainties in the US market over the period,” Mr LaGreca said.
Managed funds fell 0.9 per cent over the quarter while exchange traded funds once again increased.
