share cafe logo  

Where Are Aussie SMSFs Investing?

If you run your own self-managed super fund (SMSF), have you ever wondered how you stand against other investors in the same boat? Well, a recent report shines a light on where we invest and how much we are putting away. It contains a few surprises.

The report, produced in June by a leading provider* of SMSF administration and accounting software, details some interesting insights on the 140,000 SMSFs using its services. Given this represents around 24 per cent of all SMSFs in Australia, it provides a good proxy for the SMSF market.

Membership sizes

The average SMSF has just shy of two members in the fund, with the first member having a significantly higher balance ($803,509) than the second member ($429,711). However, with the new transfer balance caps at just $1.6 million per person, I think we could expect that this will even out more over time.

Screen Shot 2017-10-19 at 3.42.53 pm

SMSFs by Asset Value

Average assets per member                          $695,479

Average assets per SMSF                                 $1,319,707

Screen Shot 2017-10-19 at 3.43.38 pm

Asset allocation

When it comes to what investments SMSF hold, we can see from the chart below that Listed Shares make up the largest proportion of portfolios with a 29 per cent weight.

Screen Shot 2017-10-19 at 3.44.22 pm

Looking at “Listed Shares” more closely, we can see that it is mostly domestic shares.

Screen Shot 2017-10-19 at 3.44.50 pm

If we then look at which shares make up the Top 20 holdings in this category, we can see it very closely mimics the 20 largest companies listed in Australia. Interestingly, Telstra is the most common domestically listed security that SMSF’s hold. Is this because of the traditionally high and stable yield?

Screen Shot 2017-10-19 at 3.45.20 pm

It is a different picture though when we look at the direct international securities held by SMSFs. In fact, these make up only 1.1 per cent of all SMSF assets. Data shows that it is much more common for global equity exposure to be accessed through unlisted managed funds, ETFs, LICs and Exchange Traded Managed Funds (ETMF). This is one reason why we here at Montgomery have decided to replicate the successful, actively managed Montgomery Global Fund (unlisted managed fund) and launch it in another version being an ETMF which will be called Montgomery Global Equities Fund (ASX: MOGL). Out of interest the top 20 directly held international stocks are shown below. Technology based companies make up 61 per cent of these assets!

Screen Shot 2017-10-19 at 3.46.03 pm

If you would like more information on our soon to list Montgomery Global Equites Fund (ASX: MOGL) pre-register your interest here.

*Class Super is now used by over 1,100 accounting, financial planning and specialist administration businesses to administer over 140,000 SMSFs,  24 per cent of the estimated 596,516 SMSFs in Australia as at 30 June 2017.

View More Articles By The Montgomery Team

Roger Montgomery is the Chief Investment Officer of Montgomery Investment Management, montinvest.com, and author of blog.rogermontgomery.com.

Roger's step-by-step guide to valuing the best stocks and buying them for less than they're worth, Value.able, is available exclusively at rogermontgomery.com. Skaffold is an online stock-picking application that rates ASX-listed stocks from A1 to C5. Watch a demo of Skaffold at www.skaffold.com.



What are the current opportunities and key risks?

More video   


 › Stronger USD Keeps Heat On Gold, Metals
 › Oil Rallies As OPEC Confirms Modest Output Hikes
 › Shares In Countdown To June 30
 › Diary: Local Jobs, EU Summit, US Housing
 › ASX Outshines Wall St Over The Week
 › Monday At The Open
 › Marcus Today End Of Day Report
 › Friday At The Close
 › Australian Dollar: Everything You MUST Know In 5 Charts
 › Consumers Are Driving China's Economic Growth - And Foreign Investors Have Noticed
 › US Supreme Court Rules States Can Tax Online Sales
 › Tolga & The Boys Await News From The Alderan Front
 › Market At Midday On Friday
 › Birds, Bees And Bugs, Going, Going, Gone
More ShareCafe   


Delivered free to your inbox before the market opens each trading day. Sign up below +