SMSFs prefer international equities

Managed funds invested in international equities proved to be the most popular assets held by the self-managed superannuation funds (SMSFs), according to Class’ detailed analysis of over 3,000 managed funds held by SMSFs.

This time, however, Class’ SMSF Benchmark Report was broadened to include 3,000 managed funds, compared to only the top 20 managed funds used in its previous report.

Based on the larger data set, Class said that international equities remained in both cases a top asset class, however the proportion of managed funds invested in this asset class dropped to 34.1 per cent for the broader set compared to the top 20 managed funds depicted in the previous report where international equities accounted for over of all holdings.

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According to the report, SMSFs typically held one or two managed funds therefore the preference was to invest in managed funds focused on international equities.

Additionally, the data showed that for SMSFs that invested in only one managed fund, 32 per cent of them were focused on international equities while for SMSFs with two managed funds, 55 per cent of the time at least one of the two funds would be invested primarily in international equities.

“With SMSFs holding over $97bn in managed funds, it was a fascinating exercise to delve more deeply into their asset preferences both inside and outside managed funds,” Class’ chief executive, Glenn day, said.

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