Government-sponsored reviews often focus on costs and efficiencies because they are easier to measure, but far greater gains can be made if the super system is encouraged to innovate, even if it comes with costs.
Author Archive | David Bell
It’s laudable for government to fund important research but for it to really make a difference, industry participants and researchers need to engage and collaborate with the other. Research on ageing is a case in point.
An appeal for interested parties to contribute to the government’s discussion paper on post-retirement products, now called ‘MyRetirement’ solutions, to be offered within the superannuation system.
In this update of the ‘winners versus losers’ investment hypothesis, momentum is the winner – again. It’s only a ‘paper’ portfolio but it suggests consistent behavioural biases among investors.
Highly respected author and academic David Blake makes a compelling case for a major overhaul of financial advice, especially the way in which projected outcomes are communicated to investors.
The unique and practical skills of actuaries will be essential for the superannuation industry to tackle such complex issues as providing adequate retirement outcomes and effectively managing big data.
Even the experts can slip up sometimes with insufficient diligence when making investment decisions, but it’s important to self-assess mistakes to avoid a repeat experience.
Some global index calculations understate the performance of the portfolio, making it easier for fund managers to outperform. Investors should know this and manage the consequences.
Comprehensive Income Products for Retirement, or CIPRs, are almost a reality and there is much excitement around what this means for superannuation and retirement outcomes.
Everyone can be a naive investor at times, even the professionals. Outside of a sphere of expertise, the quality of investment decisions can suffer. Try to avoid being the ‘patsy’ in a transaction.
The term ‘alpha’ may be financial jargon, but for fund managers, it’s the highly sought-after prize for successful active management that justifies fees charged. But how do you select a good manager?
High yielding stocks are often seen as the silver bullet for retirement plans. But in many circumstances the focus on income overlooks the need to consider return and risk in any investment decision.
A simple strategy of backing prior winners and shorting prior losers has outperformed again in 2015, supporting arguments for ‘momentum’ investing. It’s an example of a factor that can be used across a portfolio.
Financial risk aversion defines our attitudes to taking financial risk. Your style of risk aversion could be relative or absolute or a bit of both. It’s good to recognise your own tendencies for the benefit of your portfolio.
The Grattan Institute’s recent paper on reducing costs associated with superannuation is a reflective read for all executives and trustees of super funds in Australia, but is it the time right for these changes?
People with low levels of financial literacy have a greater likelihood of making financial mistakes, including being misled or defrauded. The financial services industry should work to address this.