SMSF trustee returns match fund managers – survey

cent/SMSF/SMSFs/property/fund-managers/asset-allocation/trustee/morningstar/chief-executive/

14 August 2006
| By Liam Egan |

Self-managed super fund (SMSF) trustees are matching fund managers for investment performance, according to a survey by SMSF provider Multiport.

The survey of 350 of its administered SMSFs, with average net assets of $700,000, produced an average 10.15 per cent return per fund for the year to June 30, 2006.

By comparison, Morningstar’s return for balanced retail super funds for the year to June 30 was 11 per cent, and 7 per cent for moderate risk funds.

Similarly, according to chief executive John McIlroy, the asset allocation of Multiport’s SMSFs would “fit between the risk profile of a balanced fund and a moderate risk fund”.

Australian shares (41.8 per cent) dominated the average Multiport SMSF asset allocation, followed by property (17.3 per cent), fixed interest (14.3 per cent), international shares (12.3 per cent) and cash (11.5 per cent).

“Given the risk profile of these funds, it was not a bad result for the year,” McIlroy said, adding that the performance of its SMSFs was “impacted slightly by a few funds that had some exposure to the Westpoint funds”.

The shorter-term performance of the SMSFs was also “obviously impacted” by the downward movement of the share market in June, which returned a negative 0.3 per cent.

“With the level of Australian share exposure at around 40 per cent, this was to be expected.”

The survey found the SMSFs were “substantially dependant” on fund managers to perform well, with 35 per cent of their funds invested through managed funds across all asset classes.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS