SMSF investment underperformance is costing each fund around $13,000 over the past year, according to SuperGuard 360.
SuperGuard 360 compares the performance of SMSFs, based on reporting asset holdings, to the investment strategies of MySuper super funds. It found that returns, before fees and taxes, for SMSFs were 6.6% at the end of April 2018. If SMSFs had invested as MySuper products it is estimated they would have returned 7.8%.
This 1.2% less in investment returns is estimated to cost $8 billion across the sector, or $13,000 per SMSF.