How Does Your SMSF Stack Up? Benchmarking Performance in 2025
- WT Capital
- 2 days ago
- 3 min read
With over 610,000 Self Managed Super Funds (SMSFs) now active in Australia, more trustees are asking a vital question: how does my fund compare to others like it? According to new data reported by the Australian Financial Review, benchmarking is no longer just for large institutions—it’s increasingly essential for SMSF trustees seeking better outcomes in retirement.
The $876 Billion Sector and Growing Scrutiny
The SMSF sector now manages $876 billion in assets, making it a powerful segment of the superannuation landscape. Yet many trustees operate in isolation—without a clear view of how their investment strategy, asset mix, or fund costs stack up against peers.
A recent AFR analysis, drawing on ATO and SuperConcepts data, shows wide performance variability between SMSFs. Some funds significantly outperform retail and industry super funds, while others struggle to match inflation.
"If you're not reviewing your SMSF's asset mix, costs and returns regularly, you're flying blind," Graeme Colley, executive manager at SuperConcepts.
Asset Allocation: Is Your SMSF Too Heavy on Cash?
One of the most striking findings from the data is the over-allocation to cash and term deposits. SMSFs with balances under $200,000 are especially prone to conservatism—sometimes holding over 30% of their assets in low-yield cash products. In contrast, higher-balance funds tend to embrace property, listed shares, and even alternative assets.
Asset Class | Avg Allocation – All SMSFs | Top-Performing SMSFs |
Cash & Term Deposits | 20% | <10% |
Listed Shares | 28% | 30–40% |
Property (Direct) | 15% | 20%+ |
Managed Funds/ETFs | 13% | 10–20% |
Other (incl. Crypto) | 3% | 5–10% (carefully weighted) |
If your fund holds an excessive cash allocation, it may be time to reassess your risk tolerance and investment strategy—especially in light of inflation risks and rising property yields.
Property Investment: A Strategic Differentiator
SMSFs investing in direct residential or commercial property are often among the strongest long-term performers—particularly when properties are located in high-growth corridors and leased to related parties under arm’s length terms.
However, the AFR cautions that property must be handled with care:
"Poor property selection or non-compliant borrowing structures can quickly erode returns," Graeme Colley, executive manager at SuperConcepts.
At WT Capital, we specialise in helping SMSF trustees navigate property purchases safely and strategically—ensuring compliance with ATO rules and maximising tax efficiency.
Fee Efficiency: Low-Cost ≠ Low-Quality
While retail and industry funds promote ultra-low fees, the AFR’s review highlights a key nuance: SMSFs can be cost-effective if properly managed. The median annual expense ratio for SMSFs was 1.3%, but with economies of scale, large funds ($500k+) often operate at less than 1% annually.
If your SMSF is small and self-directed, you may be paying proportionally more for admin, auditing, and advice. That doesn’t mean you need to abandon it—but it does mean that optimising your structure, consolidating accounts, or exploring property investment can help drive long-term value.
Benchmarking: A Call to Action
The takeaway from the AFR’s deep dive is simple: SMSFs vary dramatically in performance, risk, and cost. But with the right tools and advice, your fund can outperform.
Start by asking:
How has your SMSF performed over the past 5 years compared to a benchmark?
Are your investments diversified and growth-oriented?
Are you holding excess cash or underperforming assets?
Do your fees make sense for your fund’s size and complexity?
If you're unsure how your SMSF stacks up, a portfolio review can be a powerful first step. At WT Capital, we offer obligation-free assessments and specialise in helping trustees make confident, data-driven decisions.
Ready to optimise your SMSF?
Talk to the experts at WT Capital about property investment, compliance, and performance benchmarking tailored to your fund.
