Self-managed super fund asset growth has grown at twice the pace of that in the superannuation industry over the five years to June 2010, new figures show.

Assets held by SMSFs increased by 122% over the five year period compared with growth of 60% for the total super industry, Australian Tax Office (ATO) figures show.

The outperformance is attributed to the rapid growth of the number of SMSFs and an increase in contributions and net rollovers into DIY super from investment earnings.

“SMSF members are the most engaged in the superannuation industry, with a keen interest in ensuring their funds operate and perform well and this is borne out by their high level of voluntary super contributions, their funds’ superior investment performance and their willingness to seek advice from professionals,” said Andrea Slattery, CEO of the Self-Managed Super Fund Professionals’ Association of Australia (SPAA).

The figures showed that annual member contributions to SMSFs were on average double that of SMSF employer contributions.

“The consistently high level of SMSF member voluntary contributions reflects a high level of member engagement, confidence and sound advice, however, we note that the halving of the annual superannuation concessional caps from 2010 has already had a negative effect on savers’ attempts to self-fund their retirement,” said Mrs Slattery.

Establishment of new SMSFs (net of windups) averaged 25,000 a year between 30 June 2005 and 30 June, 2010.

The report also found that the majority of SMSFs have an estimated operating expense ratio of less than 1% (64.5% of SMSFs in 2009), while the highest proportion (almost 36% in 2009) having an estimated operating expense ratio of 0.25% or less, SPAA pointed out.