SMSFs are actually outperforming APRA-regulated super funds, despite initial findings of the Productivity Commission to the contrary, Class Limited has found.
Class says that a “like-for-like” Return On Assets (ROA) calculation shows an average 5.59% return for SMSFs compared to 4.98% for APRA funds over a 10 year period.
On a Rate Of Return (ROR) basis SMSFs averaged 6.71% versus 5.58% for APRA funds.
The methodology used in comparing the returns of SMSF and APRA funds in the draft report by the Productivity Commission on the efficiency and competitiveness of the super system has been criticised by Class Limited and other organisations. Class says this does not reflect on the quality of the Commission’s work, but is a “poor performance” by APRA and the ATO in being unable to agree how to report performance in the super industry.