The Performance of Australian Superannuation Funds

Author:

Bird Ron,Chin Helen,McCrae Michael1

Affiliation:

1. Australian National University. The authors wish to thank Belinda Pearson for programming assistance and Richard Castanias, Frank Finn, Larry Lookabill, Graeme Rankine, Mark Tippett and an anonymous referee for commenting on previous drafts of this paper. We would also like to thank Campbell and Cook, Consulting Actuaries, Melbourne for supplying the data on the funds and particularly Ross Heenan of this organisation. The data was supplied on the understanding we would maintain the anonymity of the funds...

Abstract

This paper analyses the investment performance of Australian superannuation funds and their managers over the period from January 1973 to June 1981. The analysis indicated that both the funds and the managers performed poorly over the first two and a half years. It was found that the poor performance during these years outweighed the improved performance in subsequent years, resulting in an overall poor performance over the total period studied. Only one manager displayed a superior investment ability and this appears to be attributable to his ability to adjust the beta of his portfolio to suit market conditions.

Publisher

SAGE Publications

Subject

General Business, Management and Accounting

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