In this paper, we examine the bear market performance of self managed superannuation funds (SMSFs). Previous studies have highlighted some problems with the portfolio construction of SMSFs. This provides a rationale for examining the performance of SMSFs during the recent bear market. Based on data from two independent samples of a total of 141 self managed superannuation funds, two archetype SMSF portfolios are constructed in order to generate insights into the average performance of the funds in the samples. The performance of these funds is compared with (1) the unmanaged market index; and (2) the average returns generated by retail (balanced) superannuation funds. Interestingly, whilst the SMSFs have generated negative returns and problems with the portfolio construction remain, the relative performance of the overall portfolios vis-à-vis the market index and professionally managed funds is reasonably favourable. However, the equity portions of the SMSF portfolios suffer from under-diversification and could be more efficiently constructed.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.