Why do most successful organisations and investors benchmark their performance? To improve… and to identify key turning points in performance.
Some Self-Managed Super Fund (SMSF) investors have an ad-hoc approach to investing. They accumulate a “bitsa” portfolio – a bit of this and a bit of that, without a lot of reason behind it. Other SMSF investors invest in a more organised way, which includes regular benchmarking, and this increases their chance of improving investment performance.
Who cares if you manage your SMSF well, and achieve your objectives?
Not the regulator of SMSFs (The Australian Taxation Office). Their role is to ensure you manage your fund for compliance. They do not have the resources to focus on how well you manage your fund for performance. So the only people to whom it matters if you manage your fund well are you and your family, and your trusted advisor if you have one. Oh… and the Australian Government.
There is approximately $600b invested in SMSFs (in 2016). If every fund was able to improve their long term investment returns by 1% pa, simply by using an organised approach including benchmarking, that’s an extra $6billion pa towards savings or to support the economy.
So good quality benchmarking matters, as it can help give you the life you want from your fund.
Content provided by: