POWERED BY MOMENTUM MEDIA
SMSF portfolios continue to underperform
Self-managed superannuation funds (SMSFs) are expected to continue to underperform as a result of lower asset class weightings to growth assets especially international equities, according to SuperGuard 360.
The company said that its latest SMSF performance indices showed that for the 12 months to 31 December, 2017 the SG360 SMSF reference index returned 9.2 per cent, underperforming the 10.5 per cent achieved by the SG360 default index which was based on MySuper products.
Also, over 10 years both the SG360 SMSF reference index returned 4.8 per cent per annum, slightly underperforming the SG360 default index which returned five per cent per annum.
At the same time, over the five-year period the gap was more in favour of the SG360 default index (9.6 per cent per annum versus 7.8 per cent per annum), the company said.
As a result, over 10 years the portfolio of the SMSF member would have grown a $100,000 investment into around $160,000 and someone in the average workplace superannuation default investment option would have grown a $100,000 investment into around $160,000.
Also, according to SuperGuard 360, smaller SMSFs which traditionally held lower allocations to equities were more likely to underperform by an even wider margin.
The SG360 SMSF reference index describes the post-fee investment return a SMSF trustee would receive in their account if they invested passively using the asset allocation represented by SMSF asset distribution published by the Australian Taxation Office (ATO).
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
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(%)
