Trustees called to ignore peer pressure

21 March 2012
| By Mike |
image
image
expand image

Superannuation fund trustees need to avoid becoming bogged down by succumbing to peer pressure with respect to determining asset allocation, according to QSuper chief investment officer Brad Holzberger.

Addressing the Conference of Major Superannuation Funds in Brisbane, Holzberger pointed to the similarities which existed with respect to asset allocations across Australian default funds.

He said those similarities had continued to exist over a number of years, despite radical changes to the underlying investment environment.

"Despite changes to the backdrop, asset allocation has not changed," Holzberger said.

He said it was in these circumstances that superannuation fund trustees needed to reflect upon their roles and the influence exerted by their peers.

Holzberger's concerns were reflected by Future Fund chief investment officer Brad Neal, who warned that acceding to peer performance measures could see valid investments being marginalised.

Neal described peer indexing as an overly simplistic investment philosophy and approach.

He said those who pursued such a path were translating their definition of risk from absolute to relative.

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

4 months 3 weeks ago
Kevin Gorman

Super director remuneration ...

5 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

5 months ago

A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been ...

7 hours ago

A professional says all roads will lead back to superannuation in the next election....

7 hours ago

Iress has said that incident involving the unauthorised access reported this week extends beyond what was initially reported....

9 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND