Financial Standard Comments - Market plunge exposes system weakness: Cooper Friday's 4% stock market fall, which caused more than $20 billion to be wiped from superannuation account balances, further exposed Australia's over reliance on equities in retirement, said Jeremy Cooper, Challenger's chairman, retirement incomes. https://www.financialstandard.com.au/feed/latest?story=12160259 Mon, 08 Aug 2011 14:22:55 +1000 Mon, 08 Aug 2011 14:22:55 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Sandgroper () Yes, we need to buy more useless bonds [not]. For younger investors, this market is a fantastic buying opportunity. And older investors with larger funds should get away from funds run by unaccountable trustees and get on with setting up their own family SMSFs. Why you need an adviser who has weathered muliple booms & busts, but they won't be around soon, thanks to the ISN & friends.

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]]> Sandgroper () Mon, 08 Aug 2011 14:22:55 +1000 Comment by Brienne () I am surprised by the figure of 32% - I suspect that actual exposure to eqiuities is much higher. The funds management industry in Australia thinks shares/shares/shares - there are major opportunities in other asset classes - matching growth, low beta, low volatility, very secure - but the preoccupation with equities means little opportunity for innovative product. I think the issue is building. Shares give liquidity (at a cost) but how liquid do or super funds need to be?

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]]> Brienne () Mon, 08 Aug 2011 15:08:18 +1000 Comment by Gerry () I think the problem is, the last time we had an innovative product boom....they failed, leaving investors seriously out of pocket. Shares are liquid and tax effective...and every time commentators start saying super funds should reduce their exposure to shares, it normally signals a market recovery.

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]]> Gerry () Mon, 08 Aug 2011 17:14:14 +1000 Comment by Henry () Missing the point, a conflict of "product" interest, loud and clear. Although the Challenger Annuity has a part to play.
Is Jeremy talking about super or retirement? In the context of the article there is a big difference.
There are a number of strategies to minimise the short term Volatility. One that comes to mind is not having all eggs in one basket, and your draw downs from short term assets. Or on the other hand most providers of Super offer choice of investments to suit most risk takers.
If the Australian consumer "got involved" and interested in super it may just make sense.

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]]> Henry () Mon, 08 Aug 2011 23:21:55 +1000