Understanding SMSF asset allocation

With over $1 trillion in assets and more than 1.2 million investors¹, self-managed super funds (SMSFs) play a significant role in Australia’s retirement landscape. They offer investors control and flexibility over their superannuation. But that freedom also means the need to make informed, strategic decisions about how assets are allocated.  

The Australian Taxation Office’s (ATO) latest statistical report offers a valuable snapshot of SMSF investment trends. These insights can help you assess how your fund stacks up against others, and whether your current mix of assets still makes sense.

According to the ATO: 

• listed shares make up 28% of SMSF assets 
• cash and term deposits account for 16%.¹ 

This blend of growth-oriented and conservative assets reflects a sector that values both capital appreciation and liquidity.  

So how does your fund compare?

Comparing your fund’s asset allocation against national averages can reveal potential gaps in your strategy.  

• Holding too much cash? You might be missing out on long-term growth. 
• Overexposed to equities? Your fund might be vulnerable to market swings.  

If your fund feels off-balance, it might be time to adjust your mix of investments.  

Diversification simply means spreading your money across different types of assets, and it’s one of the best ways to manage risk. The ATO’s data can help you compare your fund’s level of diversification against the national average.  

It’s also worth thinking about how your age and retirement plans impact your investment strategy, as well as the level of risk you’re comfortable with. 

Choosing the right mix of investments isn’t always easy. That’s where Hostplus Self-Managed Invest (SMI) comes in. 

SMI offers SMSF trustees access to ten professionally-managed investment options, including diversified portfolios and sector-specific choices. These options are designed to help you spread your investments beyond traditional shares and cash. 

• Diversification – providing exposure to a broad mix of asset classes, including infrastructure, property, and international equities. 
• Cost efficiency – competitive fees compared to many retail funds. 
• Transparency and control – you retain full visibility and decision-making power over your SMSF portfolio. 

Whether you’re looking to reduce risk or broaden your portfolio, Hostplus SMI can help strengthen your strategy, without compromising your autonomy.

To learn more about the ATO’s SMSF data, visit its SMSF statistics page.