The latest Multiport SMSF survey has confirmed what IPS has been experiencing at ground level – the latest figures showing that Self-managed superannuation fund trustees have decreased their cash holdings in favour of fixed interest and direct property investments. Cash holdings in SMSF fell 1.9% in the December quarter while direct property went up 1.1%. Property now makes up nearly a fifth of SMSF portfolios (18.9%) compared with 17.6% a year ago.

The growth in Australian equities was also higher than expected. Most of these acquisitions into SMSFs are concentrated in ASX Top 20 companies, which have collectively outperformed the All Ordinaries by 22%. IPS believes similar rationale can be offered through the purchase of investment grade properties. Through the purchase of the correct property asset an SMSF can access a low risk investment that can outperform the wider market in the medium to long-term.

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