Property stunts SMSF performance indices
A heavier allocation to property that the benchmark SG360 default index saw the SG360 reference index underperform it by 0.3 per cent in the 12 months to August 2017, according to SuperGuard 360.
In SuperGuard 360’s latest SMSF performance indices for the 12 months to 31 August 2017, the SG360 SMSF reference index returned 7.4 per cent, behind the 7.7 per cent benchmark based on MySuper products.
Over the 10 years to the same date however, the SG360 SMSF reference index returned 4.6 per cent per annum, which was equal with the average returns of the SG360 SMSF default index.
Taking those figures into account, SuperGuard 360 said that an SMSF member who invested $100,000 ten years ago would still have stronger growth compared with someone in a workplace super default investment option, with an estimated difference of around $849.
“Lower returns for the SG360 reference index over the 12 months to the end of August was driven by differences in asset allocation,” SuperGuard 360 said.
“The main factor was the allocation to property, particularly Australian REITs which lost more than seven per cent in 12 months.”
SMSFs had an average allocation to property of 18 per cent ahead, ahead of the 10 per cent in MySuper products.
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