Original article by Philip Baker
The Australian Financial Review – Page: 21 : 24-Feb-15
Credit Suisse estimates that each 25 basis point reduction in the cash rate slashes the income of self-managed superannuation funds (SMSFs) by $A500m. The firm notes that SMSFs now boast some $A568bn worth of funds under management, with equities accounting for 42 per cent of their investment portfolios. SMSFs are likely to further increase their exposure to equities in order to offset the impact of lower interest rates
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