SMSF asset concentration

For the year ended 30 June 2013, 13% of SMSFs held all their investments in one asset class, representing 6% of all SMSF assets. This is slightly more than the five-year average of 12%, but down from the 14% in 2012 (see appendix 1, table 17).

SMSFs with smaller asset holdings were more likely to have high asset concentration, with diversification of assets increasing as fund assets rise.

SMSFs with assets between $1 and $50,000 (41%) were more likely to hold only one class of asset, consistent with the fact that SMSFs in this range held 56% of their assets in cash and term deposits (see appendix 1, table 18).Footnote33

Less than 10% of SMSFs within each asset range over $500,000 held one asset class (see appendix 1, table 18). This indicates that SMSFs with more than $500,000 in assets have a greater diversity of investments.

In turn, over the five years to 2013, SMSFs with assets of $200,000 or less held a higher concentration of assets.

In 2013, approximately 59% of SMSFs held 50% or more of their assets in cash and term deposits or listed shares (see appendix 1, table 19). Cash and term deposits were the sole asset held by 11% of SMSFs. While 6% of SMSFs invested 90% or more in listed shares, only 0.2% solely held listed shares.

SMSFs in the accumulation phase were more likely to hold one class of asset than those in the pension phase (see appendix 1, table 20). This suggests SMSFs in the pension phase tend to hold a more diversified investment portfolio to ensure an income stream.

Footnote 33

ATO 2014, Self-managed super fund statistical report, June 2014.

Return to footnote 33 referrer

    Last modified: 15 Dec 2014QC 43403