Trustees of self-managed superannuation funds have maintained very high cash holdings, despite the lure of high returns in equity and residential property markets. The SMSF Professionals' Association of Australia and Russell Investments released their annual study of the sector yesterday, which estimates that more than 30 per cent of the assets of the A$500 billion sector are in cash and term deposits. According to the report, which is based on a survey conducted by researcher CoreData late last year, there was no "substantial shift out of cash" during 2013. Cash and term deposit holdings fell from 33.9 per cent of portfolios in 2012 to 31 per cent last year. About a quarter (28.6 per cent) of survey respondents said they held cash to reduce risk, while 42.9 per cent said they continued to hold a high level of cash because they were waiting for a "better investment option". SMSF trustees are renowned for being risk averse. Sixteen per cent said they were holding cash to guarantee an income stream. The Australian sharemarket index, the S&P/ASX 200, rose by more than 20 per cent last year but this did not entice SMSF trustees. The average allocation to Australian equities fell from 37.1 per cent in 2012 to 36.1 per cent last year. The allocation to residential property rose from 5.6 per cent in 2012 to 9.9 per cent last year - the biggest increase of any portfolio holding. Other holdings included six per cent in fixed interest, five per cent in international equities, five per cent in commercial property and four per cent in property trusts. Cash holdings may decline a little more this year. Just over half (53.2 per cent) of trustees said they would consider alternatives to cash because of low interest rates. The asset class that is up for consideration is equities, with 68.8 per cent saying it was the asset they were looking to get into.