Little separating SMSF performance from other funds, says fundie
A key industry fund executive has acknowledged that there is little to separate the average investment performance of self-managed superannuation funds (SMSFs) from Australian Prudential Regulation Authority (APRA)-regulated funds.
Addressing the Conference of Major Superannuation Funds (CMSF) in Brisbane, Hostplus executive manager, member choice and advice, Paul Watson pointed out that investment returns for SMSFs had been 7.7 per cent compared to 7.8 per cent for APRA-regulated funds.
"So let's put to bed the notion that SMSFs don't compete in terms of investment performance," he said.
Watson also announced moves by Hostplus to help capture some of the SMSF market — including a direct investment platform called "Choiceplus" and a pooled super trust to allow SMSFs to invest alongside Hostplus.
Watson said the fund was trying to address the reality that seven out of 10 members would not be with the fund at the time of their retirement.
Further he said there had been a marked increase in the number of 25-to-44 year-olds setting up SMSFs.
AustralianSuper's Paul Schroeder also noted the growth in SMSFs — but said many of those involved were unduly optimistic and exhibited the same tendencies as punters.
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