POWERED BY MOMENTUM MEDIA
SMSF sector set for negative cash flow
Double-digit growth rates are unlikely to continue in the self-managed super fund (SMSF) sector, according to DEXX&R's latest projections report.
It projected negative cashflows would occur for the first time during calendar 2012.
SMSF benefit payments are expected to increase to $63 billion by December 2015, $20 million more than contributions which are estimated will be $40.5 billion at that time, the report said.
DEXX&R said the prediction aligned with the older age profile of SMSF members and an increasing number of SMSFs moving into the retirement income drawdown phase.
It projected the total superannuation market would increase by an average annual growth rate of 7.7 per cent per annum to $3,171 billion at December 2012.
The growth phase in equity values would encourage money sitting in cash and term deposits and bonds to move back into equities, reversing the post-GFC trend of holding cash, including for SMSFs, DEXX&R said.
The retirement incomes market would grow at 9.6 per cent per annum to $320 billion as at December 2022, with allocated pensions representing 97 per cent of total funds under management and the remaining 3 per cent held in annuities.
Inflows into allocated pensions would also increase, due to the transfers of retiree accounts from SMSFs to allocated pensions in order to minimise administration costs.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
