While SMSFs have benefited from the rise in the Super Guarantee levy, as have most APRA funds, the report found that the asset allocation of SMSFs differs from other types of superannuation funds.

The largest asset allocation for SMSFs, according to the report, is in equities at 28.7 per cent, and self-managed funds have very little allocation in direct offshore equities, which sits at just 1.7 per cent.

However, the report found that SMSFs also have exposure to managed funds (19.1 per cent) and listed trusts (5.8 per cent), both of which could have indirect exposure to offshore equities.

“The marginal allocation to ASX equities since 2021 has been 40.5 per cent, which is getting close to double the second highest marginal allocation (managed funds, 23.5 per cent) and nearly 12 per cent above the current allocation,” the report said.

“Clearly, SMSFs have preferred to invest in ASX equities in recent years and the growth of SMSFs will support valuations.”

The report continued that SMSFs have significantly reduced their cash allocation since 2021, likely due to greater confidence in growth and ATO data shows that the current allocation of SMSFs to crypto is around 0.11 per cent, but around 0.55 per cent of new dollars have been invested since 2021, indicating that allocations are rising.

Generally, the report found that Australia's super industry is growing relative to the size of the domestic economy and equity market, but super funds' share of the ASX has been stable at around 15 per cent since 2017.

In contrast, SMSFs are closer to 12 per cent of the domestic equity market.

In 2021, Macquarie noted that super funds had been growing their offshore allocation, but the allocation to offshore has not increased since then.

Allocation by super funds into ASX real estate peaked in 2022 at 48 per cent of the market value of the ASX real estate sector and has since fallen to 43 per cent.

“Given super funds also have unlisted exposure, commercial property does not look like an area where super funds will attempt to increase allocations,” the report said.

“Australia's superannuation industry continues to outgrow the economy, supported by the rise in the SG levy to 12 per cent in 2026 and rising super demand along with reinvested dividends and buybacks, plus an IPO drought, is driving a shortage of ASX equities.”

“Australia's super industry is nearly 150 per cent of the economy and growing at a faster rate, supported by the annual rise in the SG levy. Industry funds are nearly half (47 per cent) of super assets (ex-SMSFs) and are growing faster and consolidating,” the report said.

“As a result, the average industry fund now has $59 billion in assets, twice as much as three years ago and they are four times the size of non-industry funds.”

The asset allocation of SMSFs contrasts with industry funds, with SMSFs having nearly 35 per cent in ASX securities (equity, listed trusts) and their marginal allocation since 2021 has been closer to 47 per cent, according to the research.

SMSFs also only invest 3.3 per cent in direct offshore equities, suggesting a strong home bias.