Default funds outperform SMSFs

15 May 2018
| By Hannah |
image
image
expand image

Default super funds outperformed self-managed superannuation funds (SMSFs) in the year to last quarter’s end by two per cent before fees and tax, according to SuperGuard 360.

The SG360 SMSF Reference index showed returns of 5.4 per cent for the year to March 2018, as compared to 7.4 per cent for the SG360 Default Index, which represented MySuper products.

SuperGuard 360 put this down to SMSFs generally having lower asset class weightings to growth assets, especially international equities. The 12-month returns of international equities to last quarter’s end was around 10 per cent higher than that of their Australian counterparts.

The organisation said that three quarters of all SMSFs have assets under $1 million, and these funds have higher weightings to cash and lower weightings to equities than larger, higher-performing SMSFs.

It said that this meant that “the majority of SMSF members are in funds likely to achieve lower than ideal investment outcomes”.

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. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week 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 ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 6 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 6 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 7 hours ago