ASIC confirms sub-$200K SMSFs generate negative returns

14 January 2020
| By Mike |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 7 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 7 months ago

SuperRatings has shared the top 10 balanced options of the last financial year....

22 hours ago

Global investor sentiment is becoming “toppy”, but overweight positions on equities are yet to reach extreme levels, according to a recent Bank of America survey....

1 day 19 hours ago

Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades....

1 day 19 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5