AMP Limited : Cash is King in SMSFs
01/19/2012 | 10:25pm
20 January 2012
Cash is King in SMSFs
Cash holdings reached its highest level in two years in the
December quarter with an increase of nearly two per cent,
according to the latest Multiport Investment Patterns Survey.
Fixed Interest assets, which increased last quarter, fell 2.5
per cent this quarter while Australian shares exposure also
fell by 0.6 per cent.
The quarterly Investment Patterns Survey covers around 1,600
funds, a sample of the SMSFs that Multiport administers and
the investments they held at 31 December 2011. Funds are
administered on a daily basis which ensures data is based on
up-to-date actual investments. The assets of the funds'
surveyed represent approximately $1.3 billion.
Multiport CEO John McIlroy said, "It would appear that a
significant number of longer duration term deposits that have
matured in the quarter have not been rolled over. We can put
this down to two consecutive interest rate falls in the
quarter and investor uncertainty about where interest rates
will go in 2012. This uncertainty is leading to more money
going into shorter terms and cash."
Investment in Australian shares held steady at 35.4 per cent
even though the Australian share market rose in the December
quarter. This may indicate a degree of profit taking as well
as redemption due to market volatility.
Direct Property allocation continued to rise and reached 15.4
per cent in the December quarter - its highest level since
December 2008. This reflects the ongoing acquisitions in this
asset class and the use of gearing strategies.
Mr McIlroy continued, "The average contribution inflow for
the quarter was down to $6,980 which is significantly lower
than last quarter but on par with contributions for the same
time last year. The bulk of contributions are being made in
June with some flowing over to the third quarter.
"Benefit and pension payments from SMSFs were higher than the
inflow of contributions, at around $10,800 per fund in the
December quarter. This is significantly lower that the
previous quarter but in line with seasonal patterns, which
indicates that the larger withdrawals in the June quarter
were related to potential re-contribution strategies as well
as meeting minimum pension levels."
For more information contact:
Shauna Laverty Multiport, Marketing Ph: 02 9230
0177
Mob: 0407 480 132
John McIlroy Multiport, CEO Ph: 02 9230 0177
Mob: 0411 592 118
Media enquiries:
Sarah Watson
Ph: 02 9257 1068
Mob: 0401 433 828
