Returns from investing in Australian equity superannuation funds, 1991-1999

Drew, M. E. and Stanford, J. D. (2003) Returns from investing in Australian equity superannuation funds, 1991-1999. Service Industries Journal, 23 4: 12-24. doi:10.1080/02642060412331300982


Author Drew, M. E.
Stanford, J. D.
Title Returns from investing in Australian equity superannuation funds, 1991-1999
Journal name Service Industries Journal   Check publisher's open access policy
ISSN 0264-2069
Publication date 2003
Sub-type Article (original research)
DOI 10.1080/02642060412331300982
Volume 23
Issue 4
Start page 12
End page 24
Total pages 13
Place of publication United Kingdom
Publisher Frank Cass Publishers
Collection year 2003
Language eng
Subject C1
340203 Finance Economics
720205 Industry costs and structure
1506 Tourism
Abstract In this analysis of investment manager performance, two questions are addressed. First, do managers that actively trade stocks create value for investors? Second, can the multifactor model of Gruber capture the cross-section of average fund returns for the Australian setting? The answers from this study are as follows: as an industry, investment managers destroyed value for superannuation investors for the period 1991 through 1999, under-performing passive portfolio returns by 2.80-4.00 per cent per annum on a risk-unadjusted basis and 0.50-0.93 per cent per annum on a risk-adjusted basis. Evidence is provided in support of the four-factor model of Gruber; however, the model fails to capture the impact of investment style for the Australian setting. The findings suggest that Australian superannuation investors would transform their retirement savings into retirement income more efficiently through the use of passive alternatives to the stock selection problem.
Keyword Management
Uk Investment Trusts
Mutual Funds
Performance
Risk
Selection
Portfolios
Stocks
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2004 Higher Education Research Data Collection
School of Economics Publications
 
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Created: Wed, 15 Aug 2007, 02:39:10 EST