SMSF trustees continue to dump their investments in Australia’s Top 10 listed equities as performance fails to meet expectations, according to a SuperConcepts analysis of Q4 2018 investment patterns.
Out of the total SMSF assets held, the top 10 listed securities represent 11.6% of total investments, down from 11.9% during the June 2018 quarter.
“During the last few quarters trustees have gradually reduced their exposure to the top 10 listed securities,” says Phil LaGreca, SuperConcepts National Manager of Technical Solutions.
“Australia’s top 10 equities have experienced declining value in 2018 because half of the list is comprised of banks, and their bad fortunes have dragged down the entire index.
“The Top 20 stocks underperformed at 0.05% for Q3 in 2018 compared to the rest of the All Ordinaries index at 0.57%.
“This has led SMSF trustees to look for opportunities in mid caps experiencing the middle of their growth curve because they’ll generally show greater growth in profits, market share and productivity.
“You can outperform the index if the top 10 goes bad and you’re not tied to their performance, which is why we’re seeing SMSFs using boutique value managers who tend to not follow the index and stay agile,” says Mr LaGreca.
The top 10 shares represent just under 33% of all trustees Australian Equity holdings.
Top 10 largest Australian listed securities
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