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.
SuperRatings has shared the top 10 balanced options of the last financial year.
Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades.
Australian superannuation funds have again generated strong returns for FY25, with the median growth fund returning 10.5 per cent for the year, according to Chant West.
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.