SuperRatings implements index

10 May 2007
| By Glenn Freeman |

SuperRatings has implemented an index structure to rank the performance of investments captured within its research.

The Top 50 Super Index is styled on the Australian Stock Exchange (ASX) share market indices, with fund options added and deleted depending on movements in their underlying asset size.

“Our new indices have been designed to ensure that investment options with little money in them do not skew the results of the survey,” said SuperRatings managing director Jeff Bresnahan. He also said the new structure would minimise data discrepancies that can occur when superannuation funds close poorly performing options in favour of new ones without transferring members’ assets.

“Our universe has rapidly grown to measure over 700 investment options each month,” Bresnahan said. “It is important that our indices accurately reflect what the average Australian earns on their super.”

He also confirmed that the index would specifically exclude Pooled Superannuation Trusts and funds with a tax-exempt status.

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