POWERED BY MOMENTUM MEDIA
SMSFs outperformed by MySuper products in year to February
The 12-month return for the entire self-managed superannuation (SMSF) sector, as represented by the SG360 SMSF Reference Index, to the end of February 2018 was around 5.5 per cent before fees and tax, the latest results from SuperGuard 360 showed.
This compares unfavourably with SG360 Default Index, which returned 9.6 per cent. The default index is based on the returns from default MySuper products.
SuperGuard 360 attributed the lower performance by SMSFs to lower asset class weightings to growth assets, especially international equities.
Underperformance of international equities versus Australian equities in February helped to close the gap, but the 12-month return of international equities was still around 6 percentage points higher than Australian equities, it said.
Three-quarters of all SMSFs have assets of less than $1 million, and according to figures from the Australian Taxation Office (ATO), these have much higher weightings to cash and lower weightings to equities than the larger, higher-performing SMSFs that hold the majority of SMSF assets.
This means the majority of SMSF members are in funds that are likely to achieve lower than ideal investment outcomes, SuperGuard 360 said.
So, to ensure their retirement savings last as long as they do, SMSF members should review the amount they pay in fees and benchmark their portfolio to ensure it is achieving the returns they are expecting, it said.
Recommended for you
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $80 billion industry fund’s default investment strategy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
