Average self-managed super fund (SMSF) contributions for the 2011/2012 financial year were up $6,833 from the corresponding period last year to $47,533.
Cash holdings also increased significantly in the June quarter, up by almost 4 per cent, according to the latest Multiport SMSF Investment Patterns Survey.
Multiport head of technical services, Philip La Greca, said the bulk of this year’s additional contributions were made in the June quarter.
Average contribution inflow for the quarter increased to $12,350, compared to $6,911 the previous quarter, as over 50s made use of their last chance to contribute up to $50,000 in concessional contributions.
“We usually see people make the majority of their contributions during the June quarter as it’s their last opportunity for the financial year, but this year these contributions were up considerably,” said La Greca.
“It seems that many people over the age of 50 were keen to make use of their last chance to contribute up to $50,000 in concessional contributions before the $25,000 concessional cap was applied to all ages.”
Cash was the favoured investment in the June quarter, up 4 per cent, while investment in Australian shares decreased by 3 per cent, exceeding the decrease in the All Ordinaries for the quarter.
Investment in the Top 10 Australian shares remained stable, making up 17.5 per cent of total SMSF assets held.
La Greca said SMSF trustees this quarter were chasing quality and yield in their investments.
“Continued market volatility caused a significant increase in cash holdings and short term deposits, and steady investment in top 10 ‘brand name’ Australian shares. With uncertainty around interest rates, longer term deposits weren’t favoured this quarter,” he added.
The quarterly Multiport SMSF Investment Patterns Survey covers around 1,900 funds, a sample of the SMSFs Multiport administers, and the investments they held as at June 31, 2012.
The assets of the funds’ surveyed represent approximately $1.4 billion.
