46% of SMSFs changed asset allocation in the last year

SMSF, investment, sharemarket volatility, diversification, asset allocationSMSFs are increasingly looking to diversify following recently volatility in the Australian sharemarket, according to AMP Capital.

Research conducted for AMP Capital indicates that 46% of SMSFs “significantly” changed their assets allocations in the last 12 months, with “30 per cent of this group wanting to diversify their portfolio and a further 30 per cent taking a more defensive strategy.”

“Reduced confidence in the Australian sharemarket is highlighted as an underlying driver of the change, with 25 per cent of trustees saying they negatively view Australian shares, compared to only 11 per cent in 2015,” said AMP Capital.

“We’re seeing an increasing number of trustees wanting investment options that improve their fund’s diversification. However, 83 per cent of investors say they face difficulty managing their SMSF, including a lack of time to research and select the right investments,” said AMP Capital Head of Self-Directed Wealth and SMSF, Tim Keegan.

According to the research SMSF trustees are spending 3.4 hours per month, on average, researching and selecting investments, down 8% from 2015.

“We know the real difference financial advice can make to SMSF trustees who are looking to improve the management of their fund.  Our research found that 61 per cent of  trustees are open to seeking professional advice, which has increased from 46 per cent in 2015,” Mr Keegan said.

“Trustees are telling us they are interested in managed funds as they can hold unique  investments that are otherwise unavailable to retail investors, such as global infrastructure and property. Eighty-nine per cent of trustees in the survey said access to these investments and the diversification benefits were their top reasons for wanting to invest in a managed fund.”

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