Investor confidence boosts SMSF inflows: FSC
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Samantha Hodge is a journalist with InvestorDaily, a Morningstar publication.
Improved investor confidence has seen inflows to self-managed superannuation funds (SMSFs) in the 2010-11 financial year reach more than $20 billion, an industry report found.
The Financial Services Council (FSC) Bond Report on SMSFs saw total contributions to SMSFs hit $24.3 billion in the 2010-11 period, up $2.8 billion (15 per cent) from the previous year.
Discretionary contributions represented the largest growth rate with a 19.8 per cent increase to $24 billion while employer contributions grew 4.9 per cent to $6.8 billion, the report, which uses data on contributions from the Australian Taxation Office (ATO), said.
"The rebound in growth in discretionary contributions into self-managed super funds in 2010-11 was triggered by the improvement in the economic growth and investor confidence following the financial crisis," FSC chief executive John Brogden said.
"It is critical that investment appetite for discretionary super is retained across all segments of the superannuation industry."
Listed and unlisted shares accounted for $136 billion (31 per cent) of SMSF assets, just above cash and deposits at $134 billion (30.5 per cent).
In August, FSC's chief investment officer (CIO) index also showed improved confidence from CIOs in the Australian market.
The FSC CIO Index is measured on a scale of -100 to +100, and the September quarter was at +5, up from -2 in the previous quarter.
The CIOs are equally bullish on local and overseas equities, and on Australian property, followed by international property.