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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 don’t 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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This note was uploaded on 10/04/2011 for the course ACCT 3708 taught by Professor - during the Three '11 term at University of New South Wales.
- Three '11