Changes to the superannuation system outlined in the 2016 federal budget may have led SMSF trustees to adopt a more conservative approach to trading, research from CommSec has shown.
The company found that while overall trading volume for the year remained the same, a trend towards smaller deal sizes emerged through the year.
“The beginning of this trend correlated with the budget announcement, suggesting SMSFs were more cautious with their investment strategies due to the uncertainty,” said Marcus Evans, Commonwealth Bank head of SMSF customers.
“As investors waited to see whether the proposed changes would be legislated by Parliament, they also reduced their voluntary contributions.”
Mr Evans said voluntary contributions also decreased in the September quarter, with CommSec’s analysis finding the average voluntary contribution falling from $10,750 to $3,040.
CommSec’s analysis also found that SMSFs were “the largest net investors in the ASX Top 20” during 2016 and were the most active investors in the retail sector, trading 30 per cent more in this segment than non-SMSFs on average.
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