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Default funds outperform SMSFs
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”.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
