A horrid time for Australian equities but self managed funds are buying

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Self managed super funds are still in love with Australian shares despite a run of bad losses this year.

The ASX 200 is currently running at a loss of 6% so far this calendar year but self managed funds still own about 16% of the Australian equity market.

According to Credit Suisse, the self managed funds have so far this year endured capital losses of $47 billion, or 8% of total assets, and are on track to lose another $7 billion in the current quarter.

“Selfies (self managed super funds) have had a horrid time in Aussie equities,”write analysts Hasan Tevfik and Damien Boey in a note to clients.

“We are sure the asset consultants would raise an eye-brow, or two, if institutional investors suffered the same.”

However, selfies are still in a buying mood.

“We estimate Selfies own 16% of the Aussie equity market and more than any other group of superannuation funds,” the analysts say.

“They have committed $13 billion to the asset class in the last 12 months, more than retail of industry super funds.”

What the self managed funds want is dividends to fund their retirement plans.

“Institutional investors need to continue to keep an eye on them. Not least because their numbers continue to grow,” Tevfik and Boey say.

“There were 53,000 net new selfies created in the last 12 months. Retail and Industry funds continue to bleed members looking to migrate to Selfie-ville. In the last 12 month APRA says $7 billion net was rolled-over into SMSFs from other parts of super. We think this trend will continue as long as our pension pool continues to age.”

Credit Suisse says stocks to consider for dividends include Tabcorp, AGL Energy, Macquarie Group, carsales.com and Lend Lease.

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