As SMSF trustees, one of our jobs is to manage the monies in accordance with our members’ instructions, whether this is you alone, or with your partner and family. With this responsibility comes an onus to say whether we are doing a decent job or not as an investment manager.
And even if you have decided to outsource the investment functions to an adviser, you are ultimately still responsible for the investment performance. So, how can you determine whether you are cutting it as an investment manager?
One way is to simply compare the fund’s performance to the fund’s investment objective(s). If for example your objective is to deliver a return of inflation plus 3% over a 10-year period, then if your fund has been growing at 6% pa over this period, give yourself a tick.