The March 2018 figures from the SuperGuard 360 indices show SMSFs on average returned 5.4 per cent before fees and tax over one year. That’s compared with the 7.4 per cent returned by default MySuper funds.
Over three years, SMSFs made returns of 5.2 per cent per annum, compared with default super products’ return of 5.6 per cent.
SuperGuard said this performance likely came down to SMSFs’ higher allocation to cash and bonds than growth assets like international assets.
Further, as three-quarters of SMSFs hold less than $1 million in assets, the impact of fees would be severe.
“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,” SuperGuard said.
“If they are achieving lower investment returns than the benchmark it is important they understand why.”
Market returns to March 2018
Australian equities delivered a one-year return of 2.5 per cent per annum, while international equities returned 10.8 per cent p.a.
Australian listed property had a one-year negative return of -0.8 per cent p.a., while global infrastructure saw returns of 4.8 per cent p.a.
International ESG-aligned equities made 12.3 per cent p.a., while domestic ESG-aligned equities made a negative return of -4.3 per cent p.a.
Cash had a one-year return of 1.8 per cent p.a, while Australian fixed interest made 3.3 per cent in the year to the end of March 2018.
International fixed interest made returns of 2.9 per cent p.a.