Members of self-managed superannuation funds are not generally big fans of bonds, but that could change as fund members move toward retirement.
The high allocation of SMSFs to shares reflects both shares' strong track record of generating wealth and the tax-effectiveness of fully franked dividend income. There is also increasing awareness of increasing life expectancy, and the consequent need to make capital last longer, too. Even in retirement, people will still need the returns from shares to replenish their funds.
