SMSFs in pension phase allocate more of their assets to domestic shares than funds in accumulation phase, while having less invested in property, new research has found.
SMSFs in pension phase have a stereotype of being more conservative and driven by yield. The latest Class SMSF Benchmark Report has analysed the investment habits of pension and accumulation phase SMSFs to find if this was actually the case.
The research found that pension SMSFs (which Class defines as having at least one member in pension phase) have a strong preference for domestic shares over international ones. They hold 33% of gross assets in domestic equities compared to 23% for accumulation funds. Only 1.0% of gross pension SMSF assets are held in international shares, compared to 1.2% for accumulation SMSFs.