The latest Multiport self-managed superannuation fund (SMSF) portfolio analysis has revealed cash holdings as an asset class increased in popularity over the December quarter of 2011.
The examination showed cash and short-term deposits jumped 2 per cent over the quarter while fixed-interest investments fell 2.6 per cent.
"The data would appear to indicate that a significant number of term deposit maturities have not been rolled over," Mulitport chief executive John McIlroy said in the report.
"This looks to be attributed to two consecutive interest rate falls in the quarter and investor uncertainty about the direction of interest rates in 2012. The money is being held in shorter term deposits and cash," he said.
In regard to other asset classes, the popularity of Australian equities continued to wane, falling from 36 per cent of portfolios in the September quarter to 35.4 per cent in the three months to December.
Within these allocations, 80 per cent of SMSF members preferred direct investing in local shares to using a managed fund.
Property was another asset class that accounted for a greater share of SMSF portfolios during the final quarter of 2011. The overall increase in allotments to property was 0.8 per cent for the term.
"As gearing within SMSFs continues to increase in appeal, perhaps exacerbated by current share market uncertainty, trustees are turning to property and gearing. Companies are developing products to make this process easier for trustees. Multiport released a property gearing package earlier this year and have seen an increase in investment in this area in the past quarter," McIlroy said.
The data showed 20 per cent of Multiport's clients who are direct property investors used gearing to acquire an asset in this category.
