SMSF asset concentration

Over the five years to 2012, there was a 3% increase in the proportion of SMSFs holding all of their investments in one asset class. In 2012, 14% of SMSFs held one type of asset, representing 6% of all SMSF assets (see appendix 1 table 17).

Smaller SMSFs were more likely to hold only one class of assets, 51% of those with assets between $1 and $50,000 (see appendix 1, table 18). This is consistent with the fact that SMSFs in this asset range held 57% of their assets in cash and term deposits.34

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 30 June 2012, SMSFs with assets of $200,000 or less held a higher concentration of assets.

In 2012, 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 12% of SMSFs. While 5% of SMSFs invested 90% or more in listed shares, only 0.3% 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.

    Last modified: 16 Dec 2013QC 37999