Industry Superfunds Are Feeling The Heat

What Is The Research Saying

Industry Superfunds are struggling to find their feet after another nasty blow to their investment returns according to a research study by the University of Adelaide.

The study analysed over 394,000 SMSFs, looking into 67% of private super funds.

The findings revealed that 38% of SMSFs analysed achieved positive returns, while less than 5% of APRA super funds achieved positive returns. 

The study also found that in the 2021-22 financial year, self-managed super funds (SMSFs) outperformed APRA-regulated superannuation funds, with a 4.1% higher investment return, as reported by the University of Adelaide.

During the period the study was being created, the ASX experienced a 10% decline which saw industry and retail super fund balances decrease by 5%, while SMSFs decreased by only 1%. 

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The Findings

The findings suggested that SMSFs demonstrated a major resilience to market downturns in comparison to APRA-regulated funds. 

One of the researchers, Dr George Mihaylov, a Senior Lecturer in the Finance and Banking Faculty of the University Of Adelaide explained the research methods and concluded that SMSFs fare significantly better than previously concluded in prior research. 

‍“Our research has basically standardised the way that we report these performance metrics to market, and we’ve been able to show that [SMSFs] are, in fact, doing significantly better than what we previously thought,” Dr George Mihaylov. 

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Satisfaction Is At An All Time High

While financial growth has proven to be a huge factor in why SMSFs are successful, satisfaction from SMSF members is also a key factor that is on the rise. 

The 2023 Super Satisfaction Report, conducted by Roy Morgan found that satisfaction for SMSFs as of June 2023 sat at 74.4%.

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Conclusion

Looking to join the growing number of investors setting up their SMSF? 

Get in touch with the team at Supavest to begin your property investment journey in new house and land builds, inside your super! 

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