Are SMSFs getting too much of a free ride?
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Self-managed super funds (SMSFs) in Australia have some peculiar attributes, the most glaring being the almost complete rejection of international assets in their asset allocations and a seemingly unhealthy obsession with relatively low yielding cash deposits. Just 3% of SMSF assets are allocated to offshore investments and a massive 16% of assets are allocated to cash. In comparison, larger super funds allocate 38% of their assets to offshore investments and hold 9% in cash (refer Chart 1).
Figure 1: Asset allocation in SMSFs versus large super funds. Source:…
