SMSF investors are continuing to decrease their allocation to the top 10 ASX stocks in the December quarter with performance failing to meet expectations, according to recent analysis.
According to SuperConcepts analysis of investment patterns in the last quarter of 2018, SMSF trustees decreased their exposure to the top ten ASX stocks from 11.9 per cent of total investments in the June quarter down to 11.6 per cent.
The allocation to the top 10 ASX stocks has seen a significant drop from 31 March 2015 when the top 10 stocks accounted for 20 per cent of SMSF assets.
SuperConcepts national manager of technical solutions Phil LaGreca said that during the last few quarters, trustees have gradually reduced their exposure to the top 10 listed securities.
“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,” said Mr LaGreca.
The top 20 stocks, he said, underperformed at 0.05 per cent for Q3 in 2018 compared to the rest of the All Ordinaries index at 0.57 per cent.
“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,” he said.
5 February 2019