Self Managed Super Fund Report

Posted on Nov 21, 2012 | 0 comments

The ATO recently released their latest data on self-managed super funds (SMSFs) As at June 2012 the number of SMSFs in Australia is increasing by 32,000 per year or 145 each working day!

There were in June 478,263 SMSFs registered in Australia. Collectively they hold around $439 Billion in assets (equivalent to about one third of Australian annual GDP.

The full details of the report are available on the ATO website here.

The asset allocation of all SMSFs can be seen in the graph below; the figures are in $millions (for example total SMSF assets invested in cash and term deposits is $134 Billion.

 

SMSF Funds

 

 

 

 

 

 

 

 

 

 

Some interesting data from the ATO:

  • SMSF Trustees now have 31% of fund assets in cash vs 23% in June 2004 – this is clearly a reflection of sentiment following the GFC.
  • Listed shares make up only 30% of assets.
  • 96% of SMSF assets are held by people over 35 (hardly surprising).
  • 69% of SMSFs have two trustees only.
  • SMSFs are getting bigger, with all funds with assets over $500,000 growing.

A concerning development noted in the report is that there is a significant number of SMSFs in the under $200,000 asset balance category. Of course there may good reasons for this but in the normal course the costs of establishing and maintaining a SMSF would be proportionately very high with such low assets in the fund.

What is more concerning is that there are SMSFs with less than $50,000 in assets! The issue is that at that level of assets generating a return sufficient to meet costs would be a real problem; when invested entirely in cash it would be (in the short term) impossible.

Most likely the people who have established such funds are unaware that there are some very cheap, simple alternatives available. If you have concerns about your own SMSF give Joe a call to discuss what can be done to improve the situation.

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