Self-managed superannuation fund (SMSF) trustees have used the rally in Australian equities during the September quarter to take profits and have kept the proceeds as cash, new research has found.
The average SMSF's exposure to local stocks rose to 40.5 per cent in the three months, up from 40 per cent at the end of June, the Multiport SMSF Investment Patterns Survey said.
"The increase is not as significant as would be expected given that the S&P/ASX 200 Accumulation Index rose 7 per cent in the same period," Multiport chief executive John Mcllroy said.
"An index movement of this level should have seen the allocation move to near 43 per cent, however this indicates that the last quarter saw profit taking as trustees disposed of holdings to realise gains."
The disposal of SMSFs' holdings in Australian equities saw proceeds held as cash rather than be reinvested, he said.
Cash and short-term deposits made up 21.8 per cent of SMSF assets at the end of September, while fixed interest made up 12.2 per cent.
The performance of international equities over the quarter was impacted by an appreciating Australian dollar against most major currencies, causing SMSFs' asset allocation to global stocks to drop 0.30 per cent to 7.3 per cent during the three months.
"Better performing global markets resulted in a slight increase in the direct holdings of international equities to 0.7 per cent, increasingly via exchange-traded funds," Mcllroy said.
"This has been at the expense of managed fund assets, which showed a 0.4 per cent fall over the period."
The survey also found that fund inflows into SMSFs during the September quarter was $8300, $6400 less than the June period.
"The decrease highlights the seasonality of contributions, as members maximised contributions in the last quarter of the financial year," Mcllroy said.
"A more consistent inflow in contributions is usually seen throughout the remaining three quarters."
The survey covered around 1300 SMSFs that Multiport administered as at 30 September.
