Allocations to insurance policies by SMSFs have been declining over the past three financial years, dropping by more than half or 55 per cent from $157 million in the June 2017 quarter.

In terms of asset allocation, limited recourse borrowing arrangements and both residential and non-residential property were among the few asset classes to see an increase in value.

Limited recourse borrowing arrangements rose by 5.6 per cent from $50.1 billion at the end of the September 2019 quarter to $52.9 billion at the end of the September 2020 quarter.

Australian non-residential real property jumped from $71.1 billion to $75.1 billion, while residential property increased from $37.9 billion to $40.1 billion.

Overseas residential property, on the other hand, fell from $324 million to $281 million, while overseas non-residential property dropped from $138 million to $119 million.

Listed shares, cash, debt securities, listed and unlisted trusts and other managed investments all decreased in value.

Overall, total net Australian and overseas assets held in SMSFs fell from $727.9 billion to $698.7 billion at the end of the September quarter this year.