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The Performance of Australian Superannuation Funds

Author

Listed:
  • Ron Bird
  • Helen Chin
  • Michael McCrae

    (Australian National University. The authors wish to thank Belinda Pearson for programming assistance and Richard Castanias, Frank Finn, Larry Lookabill, Graeme Rankine, Mark Tippett and an anonymous referee for commenting on previous drafts of this paper. We would also like to thank Campbell and Cook, Consulting Actuaries, Melbourne for supplying the data on the funds and particularly Ross Heenan of this organisation. The data was supplied on the understanding we would maintain the anonymity of the funds and managers.)

Abstract

This paper analyses the investment performance of Australian superannuation funds and their managers over the period from January 1973 to June 1981. The analysis indicated that both the funds and the managers performed poorly over the first two and a half years. It was found that the poor performance during these years outweighed the improved performance in subsequent years, resulting in an overall poor performance over the total period studied. Only one manager displayed a superior investment ability and this appears to be attributable to his ability to adjust the beta of his portfolio to suit market conditions.

Suggested Citation

  • Ron Bird & Helen Chin & Michael McCrae, 1983. "The Performance of Australian Superannuation Funds," Australian Journal of Management, Australian School of Business, vol. 8(1), pages 49-69, June.
    • Handle: RePEc:sae:ausman:v:8:y:1983:i:1:p:49-69
    DOI: 10.1177/031289628300800104
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    References listed on IDEAS

    as
    1. Roll, Richard, 1978. "Ambiguity when Performance is Measured by the Securities Market Line," Journal of Finance, American Finance Association, vol. 33(4), pages 1051-1069, September.
    2. Fabozzi, Frank J & Francis, Jack C, 1979. "Mutual Fund Systematic Risk for Bull and Bear Markets: An Empirical Examination," Journal of Finance, American Finance Association, vol. 34(5), pages 1243-1250, December.
    3. Jobson, J D & Korkie, Bob M, 1981. "Performance Hypothesis Testing with the Sharpe and Treynor Measures," Journal of Finance, American Finance Association, vol. 36(4), pages 889-908, September.
    4. Meyer, Jack, 1977. "Further Applications of Stochastic Dominance to Mutual Fund Performance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 12(2), pages 235-242, June.
    5. Kon, Stanley J & Jen, Frank C, 1978. "Estimation of Time-Varying Systematic Risk and Performance for Mutual Fund Portfolios: An Application of Switching Regression," Journal of Finance, American Finance Association, vol. 33(2), pages 457-475, May.
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