Norman Derham of Elstree has compiled a report showing SMSF investors have out-performed professional managers 9 out of the past 10 years

Norman Derham of Elstree has compiled a report showing SMSF investors have out-performed professional managers 9 out of the past 10 years. The relatively unsophisticated SMSF sector has adopted a rather simple approach to asset allocation - simply invest in Australian equities, property and cash. The institutionally advised industry super funds by contrast are far more diversified making significant allocations to international equities and fixed income as well as alternative assets such as infrastructure and private equity. We suggest that the out performance by may be related to the allocation to what we term as good time assets, that is, assets that perform well when the economy is performing well. We wonder what would happen if economic growth were to falter and suggest that the more sophisticated approach with exposure to non AUD assets and fixed rate bonds will out-perform. Only time will tell. Full report here (VIEW LINK)