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Institutional homogeneity and choice in superannuation

Clements, Adam & Drew, Michael (2004) Institutional homogeneity and choice in superannuation. Accounting Research Journal, 17(Special Issue), pp. 102-112.

Abstract

In this analysis of institutional investor
performance, two questions are addressed. First,
what degree of similarity is observed within the
market place for retail superannuation funds?
Second, what are the implications of
homogenous behaviour for member choice
policy? The answers from this study are as
follows: as an industry, institutional investors
destroyed value for superannuation investors for
the period 1991 through 2003, underperforming
passive portfolio returns by around
60 basis points per annum. Moreover, we find
there is a great deal of clustering around this
average underperformance. It also appears as
though funds have similar risk characteristics
which are, on average, defensive. The findings
suggest that the products offered by those
competing in this market are very similar in
nature, hence limiting the potency' of choice
policy in Australia.

Citations:

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ID Code: 22637
Item Type: Journal Article
ISSN: 1030-9616
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 17 Jun 2009 23:18
Last Modified: 29 Feb 2012 23:09

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