The Multiport SMSF Investment Patterns Survey covering 2,500 SMSF funds, shows Australian equities now account for 41.8 per cent of overall SMSF asset allocation.
According to the survey, the top 10 ASX shares account for almost 19 per cent of total SMSF investments and just over half of all direct Australian equity allocation.
AMP SMSF administration head of technical services Philip La Greca said despite the recent downturn in the domestic market, SMSF trustees appear to be “optimistic about long-term gains in Australian equities”.
The survey showed SMSFs' cash holdings declined a further 1.3 percentage points in the three months to 30 September 2014 which could indicate that funds flowed out of cash and into Australian equities, according to Multiport.
Mr La Greca said low interest rates continue to make cash less attractive as an investment, resulting in trustees not renewing term deposits.
“With no sign of term deposit rates increasing in the near term, we’ll likely see cash holdings continue to decline,” said Mr La Greca.
Asset allocation to property was also reduced, falling 1.5 percentage points with the overall asset allocation to property in an SMSF, including direct, listed property and within managed funds now sitting at 16.3 per cent.
The results of the survey indicated Australians are contributing more to their super, with the average contribution for the September quarter reaching $12,125.
This was well above the September 2013 average contribution of $9,417 and the 2012 average contribution of $8,732.
