POWERED BY MOMENTUM MEDIA
ASIC confirms sub-$200K SMSFs generate negative returns
The Australian Securities and Investments Commission (ASIC) appears to have validated the common industry belief that you need to have a balance in excess of $200,000 in a self-managed superannuation fund (SMSF) if you want to generate a positive return.
The ASIC validation has been revealed in an answer to a question on notice from the House of Representatives Standing Committee on economics in which Labor front-bencher, Andrew Leigh asked whether, on average, SMSFs with balances below $200,000 actually produced negative returns.
ASIC confirmed Leigh’s question noting that for the period 2016-17 and for the preceding two financial years, SMSFs with a balance of less than $200,000 had a negative return on assets when compared to SMSFs with a balance of more than $200,000.
“In 2016-17, the ROA [return on assets] for SMSFs with a balance of more than $100,000, but less than $200,000 was -0.48%, whereas the ROA for SMSFs with a balance of more than $200,000, but less than $500,000 was 4.65%,” the ASIC answer said.
Recommended for you
AMP’s strong 2024–25 returns were anything but a fluke – they were the product of a carefully recalibrated investment strategy that began several years ago, when the fund first became truly cognisant of its shortcomings.
ASIC is “considering what options” it has to hold super trustees to account for including the failed schemes on their platforms, according to its deputy chair.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
