2020-2021 Research Findings
Published April 2023
By using SMSF financial statement data and a calculation methodology which is directly comparable with the way APRA calculates returns for APRA regulated funds, we are able make performance comparisons between self-managed super funds and APRA funds.
To conduct this annual research, the SMSF Association has once again engaged the University of Adelaide to examine the overall financial performance of self-managed super funds (SMSFs) compared to APRA-regulated funds.
This research contributes to the existing evidence on the strong financial performance of the SMSF sector.
It extends the research completed by the University of Adelaide for the 2017–19 period, and again shows SMSFs perform on par with, or better than, APRA funds in some financial years.
View the full report and findings below.
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2022 RESEARCH
Understanding Self-Managed Super Fund Performance
Historically, comparisons between SMSFs and APRA funds have been difficult to make, due to the different formulas applied to measure their performance and the different methods used to calculate the data.
This research study overcomes many of these differences by using SMSF financial statement data (rather than data from SMSF Annual Returns) and a calculation methodology which is directly comparable with the way APRA calculates returns for APRA regulated funds. It provides a more realistic picture of the minimum capital required for an SMSF to achieve comparable investment returns with much larger funds, and how a diversified asset allocation can contribute to overall performance.
The research data revealed no material differences in performance patterns for SMSFs between $200,000 and $500,000, so the notion that smaller SMSFs in this range deliver materially lower investment returns, on average, than larger SMSFs in this range, is not supported by the research results.
Academic Paper | Understanding self-managed super fund performance
The SMSF Association engaged the University of Adelaide to examine the overall financial performance of self-managed super funds (SMSFs) compared to APRA-regulated funds. This joint research venture is based on financial statement
Fact Sheet | Understanding self-managed super fund performance
The SMSF Association engaged the University of Adelaide to examine the overall financial performance of self-managed super funds (SMSFs) compared to APRA-regulated funds. This joint research venture is based on
Research Summary | Understanding self-managed super fund performance
The SMSF Association engaged the University of Adelaide to examine the overall financial performance of self-managed super funds (SMSFs) compared to APRA-regulated funds. This joint research venture is based on financial statement
White label documents | Understanding self-managed super fund performance
The SMSF Association engaged the University of Adelaide to examine the overall financial performance of self-managed super funds (SMSFs) compared to APRA-regulated funds. This joint research venture is based on
2020 Research
COST OF OPERATING SMSFS
The SMSF Association retained Rice Warner to update its report prepared for the Australian Securities and Investments Commission (ASIC) in May 2013 ‘Cost of Operating SMSFs‘ in the context of ongoing public debate regarding the appropriate minimum size for a Self Managed Superannuation Fund (SMSF) and ASIC advice regarding fees paid by SMSF Trustees.
The research establishes the size at which a fund becomes viable and then assess implications for funds which are below this threshold.
The analysis for the 2013 report was based on the statutory costs and fee structures for SMSF service providers in comparison to the fee structures of APRA-regulated funds. The analyses were therefore based on potential fees. This analysis has been repeated.
For this report, Rice Warner has also been given access to anonymised expense, cash flow and balance information for approximately 100,000 SMSFs. This has allowed them to consider actual costs incurred.
SMSF Week 2020 | Cost of Operating SMSFs 2020 – Your industry takeaways
The SMSF Association has retained Rice Warner to update its report prepared for the Australian Securities and Investments Commission (ASIC) in May 2013 ‘Cost of Operating SMSFs’ in the context
SMSF Week 2020 | Cost of Operating SMSFs infographic
The SMSF Association has retained Rice Warner to update its report prepared for the Australian Securities and Investments Commission (ASIC) in May 2013 ‘Cost of Operating SMSFs’ in the context
SMSF Week 2020 | When is an SMSF right for you?
With over 1.1 million Australians choosing to manage their own Self Managed Super Fund, it has become a popular option for those wanting more control over their retirement savings. An
SMSF Week 2020 | White label document: How much money do you need to start an SMSF?
In the context of ongoing public debate regarding the appropriate minimum size for an SMSF, new research released as part of SMSF Week 2020, provides insights into the true costs
About the SMSF Association
The SMSF Association is the leading authoritative voice for the self managed superannuation (SMSF) fund sector, established to improve the quality of advisors, the knowledge of trustees and the credibility and health of a vibrant SMSF community.
The Association’s core beliefs embrace every Australian having the right to a good quality of life in retirement and having the right to control their own destiny.