Does your clients’ SMSF investment performance measure up? Is Your Future from Your Super up to scratch?

  • Presentations
  • Investment standards

National Conference 2022

2021 saw the first release of the Your Future Your Super (YFYS) performance test. This resulted in nearly a million people being informed their existing super fund was not up to scratch. While this is targeted at MySuper funds, the ramifications for all superannuation funds including SMSFs is critical. This test is a clear indication of the Federal Government’s mutual obligation pact between itself and the Superannuation sector: the government provides tax incentives and concessions and the sector delivers enhanced retirement savings and a reduced government costs for the age pension.

With the SMSF sector being larger than the MySuper sector, and proposals to extend the performance test to “Choice” funds, the possibility of something similar applying to SMSFs cannot be discounted.

This means the SMSF sector needs to understand the YFYS performance test measures and how to do comparable measures for SMSFs that will align with both the trustee outcomes from a measurable & comparable investment strategy and financial advisers’ obligation for clients’ best interest.

At the end of this session, you will be able to: 

  • Learn the basis of the YFYS performance calculation;
  • Understand what data is needed for calculating SMSF performance, and;
  • Learn how to use investment performance as part of the SMSF investment strategy objectives. 

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association