SMSFs engaged despite volatility

SMSF investors took advantage of market volatility in January and were more engaged traders, according to AUSIEX (Australian Investment Exchange Limited).

SMSF accounts were net buyers throughout the month of January 2022, averaging 57 per cent buys, and have become more engaged traders over the past 9 years. An advised SMSF account opened in 2012 took an average of 194 days to place its first trade, compared to 40 days for an advised SMSF account opened in 2021.

Nomura Research owned AUSIEX specialises in equities execution, clearing and settlement services, and equities administration. As a provider of wholesale trading solutions, AUSIEX serves more than 10 per cent of Australia's total SMSF market.

In the most recent data, advised and advised platforms new SMSF accounts were in the majority at 56.1 per cent of all accounts, compared to 43.9 per cent for self-directed new SMSF accounts.

"Self- directed investors who not long ago had the time to set up and manage the compliance obligations and direct their investments, may be finding themselves facing both challenging investment conditions and time poor once again. As a consequence, they may now be again seeing the value in and actively seeking professional advice," AUSIEX chief executive officer, Eric Blewitt, said.

Blewitt added that advised clients are far more likely than self-directed SMSF clients to trade ETFs, AREITs, hybrids and exchange-traded physical commodities.

The average age of the SMSF account holder is also getting younger, as more millennials decide to take control of their super via an SMSF. The average age of the principal contact on new SMSF trading accounts has fallen from 67 in 2012 to 59 in 2022.