Market/Finance News Blog: SMSFs in the spotlight

By the resi financial blog team, 04 November 2014

Market/Finance News Blog: SMSFs in the spotlight

Self managed super funds (SMSFs) have been a hot topic this week. With SMSFs becoming an increasingly popular choice for superannuation and the number of investors growing exponentially, the effect of these funds is now being felt strongly by other market operators.

According to July figures from the Australian Tax Office (ATO), the number of members enrolled in SMSFs was just over a million as of June this year, up from just over 950,000 for the same time last year, and 900,000 in June 2012.

Research from Ernst & Young shows superannuation funds are playing an increasing role in the mergers and acquisitions market, and along with other new market players, have changed the landscape for traditional investors.

The ATO figures back up this assertion, with over and estimated $177 billion in listed shares owned by SMSFs in the June 2014 quarter. Unlisted shares also featured at $5.8b. An interesting figure was residential real property, as around $19.5 billion.

Cash and term deposits was the second biggest proportion of assets held by SMSFs at almost $158b, indicating that there is a strong tempering of volatile holdings with safe assets.

The Australian Securities and Investment Commission (ASIC) has recently expanded its External Advisory Panel to reflect increasing instances of SMSF investments and holdings.

Acting as an industry advisor to the government body, the Panel provides a deeper understanding of the practical implementation of various financial tools and practises in real world applications.

Recent additions to the Panel are former treasurer Peter Costello, as well as SMSF specialist Claire Mackay. Ms Mackay will aid the Panel in providing ASIC with a deeper level of understanding into industry practises and potential risks in the future, protecting consumers and helping professional SMSF administrators improve their service to their members.

If a self managed super fund sounds like the option for you, talk to your local resi loan specialist today about joining the growing number of Australians taking control over their own retirement.

Categories: Business Owners, Financial Services, Home Loans, Property Investment