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SMSF asset concentration

Last updated 15 December 2015

For the year ended 30 June 2014, 12% of SMSFs held all their investments in one asset class, representing 5% of all SMSF assets. This is generally in line with the five-year average of 12% and 6% respectively, but down from the previous two years (see appendix 1 table 17).

Generally, 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 57% of their assets in cash and term deposits (see appendix 1, table 18).30

SMSFs with the larger assets have a greater diversity of investments, with less than 9% of funds within each asset range more than $500,000 holding just one asset class (see appendix 1, table 18).

In turn, over the five years to 2014, SMSFs with assets of $200,000 or less held a higher concentration of assets.

In 2014, approximately 56% 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 in supporting an income stream.

30 ATO 2015, Self-managed super fund statistical report, June 2015.