The MySuper Default Option: Assessing Portfolio Diversification, Suitability for Contributors (CIFR - SUP005)
Area of Interest
Superannuation, Financial Market Developments
According to the Federal Government, MySuper is “a new low cost and simple superannuation product”, that will provide a “single diversified investment strategy, suitable for the vast majority of members who are in the default option.” As more and more MySuper products are approved by the regulator (APRA), this study seeks to explore the diversification of various MySuper products and their suitability for investors. The study will build on a new measure of diversification, the diversification delta. It will also focus on the performance of MySuper products when a contributor is close to retirement and his or her capital base is near its maximum. In this respect, the performance of MySuper products will be compared to alternative, potentially more conservative investment approaches that reduce downside risks for contributors close to retirement.
Team Leader: Professor Stefan Trueck, Co-Director Centre for Financial Risk, Department of Applied Finance and Actuarial Studies, Faculty of Business and Economics, Macquarie University; Researchers: Dr Robert Bianchi, Senior Lecturer, Department of Accounting, Finance and Economics, Griffith Business School, Griffith University; Professor Michael Drew, Professor of Finance, Department of Accounting, Finance and Economics, Griffith Business School, Griffith University; Dr Yuri Salazar, Postdoctoral Research Fellow - Centre for Financial Risk, Faculty of Business and Economics, University of Melbourne