Market volatility concerning SMSF investors
SMSF investors are reacting with caution to volatile market conditions by increasing their holdings in cash and term deposits, according to new data released by OneVue.
Investment in cash and term deposits rose by 2.7 per cent to 19.9 per cent in the March quarter of this year, compared with the December quarter of last year, according to trend statistics monitored in a quarterly survey of OneVue SMSF investors.
It’s the biggest quarterly jump for this asset class in OneVue statistics since 2012 and reverses a declining trend in these asset classes for most quarters since then.
“The timing of this jump coincides with challenging equity market conditions, with a major fall in equity markets last August, followed by an increase in volatility from December to February,” said OneVue head of product and transactions, Brett Marsh.
“All investors are reacting cautiously amid these global shifts and SMSF investors are no exception.”
A greater use of professional investment management also continues to be displayed by OneVue SMSF investors. “SMSFs are recognising the need for good advice and good investment management,” said Mr Marsh.
Cash and term deposits are now the fourth-biggest asset class in investments held by OneVue SMSF investors. The top three are managed funds (unitised trusts), then separately managed accounts (SMAs), then listed shares.