My portfolio – keep calm and carry on

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By now older SMSF investors with funds in pension mode should realise that, when they line up at the start of the superannuation performance stakes, they are literally the backmarkers. They have a handicap, which, in current circumstances, makes it very difficult to achieve a positive overall investment result.

Accepting erosion

That was my sobering realisation when I sat down to review how my own SMSF was performing. It wasn’t that the fund was too defensive in its asset allocation, with too much in cash. In fact my SMSF currently has just over 70% of its assets in shares (including hybrid securities as equities). This fairly aggressive asset allocation hasn’t been enough to offset the effects of current very low interest rates on the remaining funds in fixed interest and cash.

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