MySuper members achieve better investment outcomes
Typical MySuper members have achieved better investment outcomes than self-managed super funds (SMSFs) who employed conservative or inactive investment strategies, according to performance indices released by SuperGuard360.
For the 12 months to 31 October, 2017 the SG360 SMSF reference index returned 10.2 per cent and underperformed the 12 per cent achieved by the SG360 default index, which was based on MySuper products.
As a result, over 10 years the SMSF member would have grown a $100,000 investment into around $154,000 and someone in the average workplace superannuation default investment option would have grown $100,000 investment into around $157,000.
Such results were also helped by the continuing bull run in equities, both Australian and international, that have benefited strategies that had higher weightings to growth assets.
As far as the geographies were concerned, October saw global equities’ major indices hitting new records and, at the same time, US equities were supported by mostly positive economic data.
Also, Eurozone equities delivered a positive performance, with the economic backdrop remaining encouraging and the central bank announcing an extension of the quantitative easing to September, 2018.
Following this, emerging markets posted a strong run with ongoing strength in global growth proving supportive and Australian equities showed strong performance across all sectors, with the overall market growth of four per cent over the period while small caps rose six per cent.
At the same time, Australian listed property returned 2.2 per cent during the month and Australian Fixed income returned 1.5 per cent during the month, outperforming International fixed interest which returned 0.5 per cent.
AUTHOR
Oksana Patron
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
