An article on the website Professional Planner says that the SMSFs have put in a large volume of their funds into Australian cash investments despite a dip in the interest rates. This has been at the expense of ignoring foreign assets which had come into their own due to the depreciating Aussie dollar. The move may prove costly.
In the second Quarter, SMSFs have put in only about 1% in overseas shares whereas they have invested $862 million cumulatively in overseas property and offshore managed investments. Both these figures are disheartening.
The SMSFs are not diversifying in overseas assets too well and this is creating problems of two types. First, they are losing out on great returns which the overseas investments may provide and second, they are missing out on maximising the depreciation of the Aussie dollar.
You can read the original article here.