The recent ATO June SMSF quarterly statistics report has highlighted some substantial changes in asset allocation and fund growth that are being observed in SMSFs, which appears to reflect changing investor preferences and wider financial trends. 1. Popular Asset Classes in SMSFs According to the report, SMSF investors continue to allocate their funds across a […]
The recent ATO June SMSF quarterly statistics report has highlighted some substantial changes in asset allocation and fund growth that are being observed in SMSFs, which appears to reflect changing investor preferences and wider financial trends.
1. Popular Asset Classes in SMSFs
According to the report, SMSF investors continue to allocate their funds across a diverse range of asset classes, with the following categories leading the way:
| Asset Class | Percentage of Total SMSF Assets | Change in Allocation |
| Listed Shares | 28-29% | Consistently dominant |
| Cash & Term Deposits | 16-17% | Decreased from 22% (2018) |
| Unlisted Trusts | 13% | Stable |
| Non-Residential Property | 10% | Stable |
| Residential Property | 5-6% | Stable |
| ETFs | 5.4% | Growing in popularity |
| Listed Trusts | 6% | Stable |
Popular Asset Classes in SMSFs
Listed shares constitute a predominant portion of SMSF portfolios, comprising nearly 30% of total assets. While cash and term deposits continue to account for a substantial share, their allocation has consistently decreased since 2018. Unlisted trusts and property investments maintain a stable presence, whereas ETFs have witnessed significant growth, emerging as an increasingly favoured option for diversification at a reduced cost.
2. SMSF Growth and Establishment Trends
The SMSF sector has seen a pronounced rejuvenation in the number of new funds being established, with 8,613 new funds in the June quarter 2024-a level not seen since 2018. This now takes the overall number of SMSFs beyond 625,000 and represents a year-on-year increase of 4.5%. This increased interest could be due to people wanting to take more control over their retirement investment decisions.
| Quarter | New SMSFs Established | Total SMSFs |
| Q2 2023 | 6,820 | 598,526 |
| Q3 2023 | 7,120 | 606,123 |
| Q4 2023 | 7,840 | 615,968 |
| Q1 2024 | 8,010 | 617,810 |
| Q2 2024 | 8,613 | 625,609 |
3. SMSF Asset Values and Performance
SMSF Asset Values and Performance In total, SMSFs are responsible for managing approximately $990 billion of assets, which is 26% of the total superannuation system in Australia. The average value of an SMSF is $1.55 million, but the median is much lower at $877,000. This shows the large variation in the size of funds, ranging from small, conservative portfolios to larger, growth-orientated funds.
| SMSF Metric | Value |
| Total SMSF Assets | $990 billion |
| Percentage of Super Assets | 26% |
| Average SMSF Assets | $1.55 million |
| Median SMSF Assets | $877,498 |
Figure: Asset Allocation Distribution Among SMSFs
4. Emerging Trends: ETFs Gaining Momentum
While ETFs only make up 5.4% of the total SMSF assets, they are one of the fastest-growing choices by trustees and interestingly at the cost of employing financial advisers. Approximately one-third of all SMSFs now have holdings in ETFs, which is expected to keep trending upward as more SMSF trustees seek out efficient ways to manage risk and access global markets in a diversified and lower-cost manner.
Figure: ETF Holdings Growth in SMSFs (2018-2024)
Conclusion: A Sector in Transformation
Self-managed superannuation funds are gaining a more prime position in the retirements of Australians, with more opting for self-management in order to have greater control over their investments. The growing popularity of Exchange-Traded Funds listed shares continuing to dominate, and cash and term deposits slowly decreasing suggest that SMSF investors are following a more growth-oriented strategy, balancing out the risk through diversification. This increasingly diverse landscape brings both opportunity and challenge to the SMSF trustee, who has to be attentive in order to pursue an optimal portfolio. This speaks to a sector that not only continues to grow in size but also in sophistication, with SMSF trustees making increasingly complex decisions on investments. Against a backdrop of these continuing trends, SMSFs are bound to continue being a core part of the Australian retirement regime, offering the flexibility and control that attracts such a wide variety of investors to them.
ADDITIONAL INFORMATION:
Contact My SMSF – Contact Us | SMSF Setup, SMSF Accounting and SMSF Loans (mysmsfproperty.com.au)
ATO SMSF Property – SMSF June 2024 Stats
