POWERED BY MOMENTUM MEDIA
Cash investment holding back SMSFs: Market Vectors
Self-managed superannuation funds investing record amounts in cash could hinder their ability to grow or even protect their wealth, according to Market Vectors Australia.
Managing director Arian Neiron said the approach could constrain wealth growth as returns are low and inflation could rise.
"Annual inflation was 2.9 per cent so the real returns on cash investments are close to zero, add in tax and you are in negative territory," Neiron said.
"The Reserve Bank has this week indicated that it is not likely to raise interest rates anytime soon and banks have lowered rates on term deposits. SMSF investors should consider their options to protect against rising inflation."
Data from the Australian Taxation Office (ATO) released this week showed SMSF cash investments rose to $156.2 billion during the March quarter, up from $153.7 billion in the December 2013 quarter.
The cash holdings make up 28 per cent of total SMSF assets, which hit $558.6 billion in the March quarter, up from $547.6 billion in December 2013.
SMSFs invested $179.5 billion in listed shares, up from $174.8 billion in the December 2013 quarter.
SMSFs invested $20.4 billion in listed trusts (including exchange trade funds), up from $19.9 billion in the December quarter.
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
62.62 3 y p.a(%)
3
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.95 3 y p.a(%)
4
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
5
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
Add new comment