New research points to SMSF outperformance
While conventional wisdom holds that cash-focused SMSFs lag conventional funds, new data suggests otherwise.
Self Managed Superannuation Funds (SMSFs) have not only been the fastest-growing segment of the superannuation industry, they have also rewarded their members with on average out-performance over the past five years, according to new data produced by Rice Warner and commissioned by National Australia Bank.
The data, released this week, show that between 2005 and 2012, SMSFs out-performed in six of the eight years analysed returning 7.7 per cent per annum compared to 4.9 per cent for the rest of the superannuation industry over the eight years.
The research runs counter to the commonly-held belief that because many SMSFs are overweight cash they underperform the market.
Commenting on the research analysis, NAB executive general manager, Banking and Wealth Solutions, David Gall said that contrary to many common perceptions it seemed that SMSFs did rate well in terms of performance when compared to other funds.
He said that SMSF trustees were taking responsibility for their own retirement but were, at the same time, seeking out and paying for good advice.
“It’s clear that many members and trustees are fully prepared to pay for advice if they believe it is worth doing so,” Gall said.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
