SMSF quarterly contributions down

By Julie May  |  25 Jan 2011  |  

Julie May is a journalist with InvestorDaily, a Morningstar publication.

Average contributions to self-managed superannuation funds (SMSF) decreased to $6400 in the December 2010 quarter from $8300 in the September 2010 quarter, a survey conducted by SMSF specialist administrator Multiport has revealed.
Multiport chief executive John McIlroy said the decline followed a trend seen during the 2010 financial year, with the bulk of contributions made in the last quarter to 30 June.
"Interestingly, however, benefit and pension payments from SMSFs were almost twice the average inflow of contributions at around $12,000 per fund in the December quarter," McIlroy said.
Meanwhile, there were no major changes to overall market allocations as SMSFs continued with a balanced investment approach.
McIlroy said exposure to Australian equities continued to increase, with allocations rising to 41.4 per cent, but were still marginally lower than the same time a year earlier.
"SMSFs continue to have a very high weighting to the top 20 ASX-listed stocks ... showing their reliance on the big four banks and the big miners," he said.
International equities on the other hand dropped to their lowest allocation in the past 12 months, with an appreciating Australian dollar against most major currencies having a counter-effect on performance, he said.
The survey also showed that trustees maintained their exposure to fixed-interest holdings, with allocations decreasing only slightly to 11.8 per cent.
McIlroy said the overall allocation to property decreased from 16.3 per cent to 15.7 per cent and that there had been no drop in direct property allocation since December 2009.
"Due to irregularity in how often properties are valued, the decrease may not indicate disposal of the properties, rather the allocation being affected by the improved performance of other sectors," he said.
Meanwhile, cash holdings increased slightly, boosted by post 30 September dividends and distributions.

Source: Morningstar.com.au