Self managed superannuation funds and the bear market of 2007-2008

Phillips, Peter J. and Baczynski, Michael P. and Teale, John (2009) Self managed superannuation funds and the bear market of 2007-2008. Australasian Accounting Business and Finance Journal, 3 (1). pp. 38-56. ISSN 1834-2000

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[Abstract]: 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.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright c2009 Australasian Accounting Business and Finance Journal and Authors.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 21 Jul 2009 03:05
Last Modified: 08 Sep 2014 06:34
Uncontrolled Keywords: self managed superannuation funds; performance; market index; retail superannuation funds
Fields of Research : 14 Economics > 1402 Applied Economics > 140207 Financial Economics
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970114 Expanding Knowledge in Economics

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