The Top 10 Stocks Held By Australia's Self-Managed Funds

Self managed super funds have an enormous influence on the Australian market.

There are 500,000 of them, with an average two members each. Combined they control about one-third of the total $1.8 trillion superannuation funds in Australia.

But tracking them is difficult because they don’t tend to act as a group.

However, we do know they own about 16% of the shares listed on the ASX.

So their tastes in investment will influence the prices of assets, just on a straight supply and demand outlook.

For example, if self managed funds are chasing an asset class, such as local bank shares, then that will keep prices up.

We do know they will follow investment trends of the day and have a liking, for example, of companies with good dividend flows such as the major banks.

Multiport, a specialist SMSF and Managed Account administration company, does a quarterly survey of 2,200 self-managed funds which between them have $2.2 billion in assets.

The latest Investment Patterns Survey shows the level of cash held by funds, at 18.29%, is at the lowest level since the start of the quarterly survey in 2007.

“Lower interest rates continue to make cash less attractive as an investment,”says Multiport.

“The most recent interest rate cut occurred during the financial year in August 2013 which brought the RBA cash rate to its current level of 2.5%.”

Here’s a breakdown of the average asset allocation:

Property held by SMSFs is mainly directly in residential homes.

International equities was 1.23% above expected allocation, partially driven by increased acceptance in ETF’s.

The Australian Equities is slightly lower than expected from normal growth in the market.

This was mostly driven by the significant weighting that direct Australian Equity holders have in the top 20 stocks which slightly underperformed the All Ordinaries for the year.

Out of the total SMSF assets held, trustees have invested almost $1 of every $5 in the top 10 representing almost 19% of total investments.

The top 10 shares represent almost 52% of all Australian equity holdings.

The most commonly held shares at June 30 this year:

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