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Unformatted text preview: differences b. Investment performance relative to benchmark-(investment manager skill) played little part in the differences in fund performance c. Expenses-main reason(s) for outperformance (explicit or embedded) d. Taxes-main reason for outperformance (gross return net return) Created a benchmark investment option to compare performance of NFP and retail funds. 3. People dont care, people are short sighted and people are not educated enough. The creation of the default option cultivates a culture of not caring enough about super. Supply side issues-complexity, agency costs, exit costs, lack of comparability and transparency to actively compare across funds. Supernomics: Industry Super competition Factors driving competition o Consumer behaviour 3% switch funds each year Exit fees o Searching and switching fees o Remuneration of financial advice...
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- Three '11