Investment performance
Care must be taken when using SMSF performance figures, particularly when making comparisons. While the methodology used to estimate SMSF performance resembles APRA's, the data collected is not the same.
Notwithstanding, the estimated return on assets (ROA) for SMSFs in the year 30 June 2010 was positive (7.6%) following negative returns for the years ended 30 June 2008 and 30 June 2009
(-6.2% and -6.7% respectively).20
Comparisons to APRA regulated funds of more than four members showed the same trend for the three years (-8.1% and -11.5% and 8.9% respectively).21
Graph 19 shows that majority of SMSFs experienced a negative ROA for the years 30 June 2008 and 30 June 2009 (almost 70% and 71% respectively). However, in 2010 almost 80% of SMSFs had a positive ROA, while the majority (over 52%) had a ROA of greater than 5%.
Graph 19: SMSF return on assets
The estimated SMSF ROA continues to show a direct relationship between SMSF size and the ROA. The larger the SMSF the more improved the ROA (see appendix 1, table 12).
Graph 20 shows the estimated average ROA by SMSF size for the three years ended 30 June 2008 to 30 June 2010. All SMSFs with $100,000 or more in assets had a positive ROA in 2010. Compared to 2008 and 2009, ROA had improved across all asset ranges during 2010, coinciding with the improved confidence in the world economy.
Graph 20: SMSF return on assets by fund size
Last Modified: Thursday, 7 March 2013