Lifecycle discussion needs context: MillimanBY MELANIE TIMBRELL | MONDAY, 20 AUG 2012 12:50PMThe increased discussion of lifecycle products in a MySuper context needs to take into account lessons from overseas failures, including target date funds in the US, according to one consultant. |
Editor's Choice
Netwealth reports record $36bn FUM in Q1
|Netwealth observed record growth over the first quarter of the financial year, with both funds under administration and funds under management increasing by $3.4 billion and $2.4 billion, respectively.
First Sentier lists active ETF
|First Sentier has made the First Sentier Global Listed Infrastructure Fund (Hedged) Active ETF available to Australian advisers and investors.
Janus Henderson launches global equities active ETF
|Janus Henderson Investors has launched a global equities strategy designed to combine a broad market exposure with research-driven stock selection.
SILC partners with Totality to give clients brokage access
|Wholesale trustee The SILC Group (SILC) has partnered with brokerage firm Totality to provide its equity fund manager clients with access to institutional-grade prime brokerage services.
Further Reading
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
David Sharpe
CHAIRMAN
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.
The Financial Standard podcast Tune in each week as we discuss the latest developments in Australia's wealth management industry. |  |
Diversification in the US is inadequate because most TDFs are predominately US stocks and bonds. The current trend is toward lower fees but low fees equate to low diversification since diversifying assets command a high price, namely commodities, real estate, natural resources, foreign stocks and bonds, etc.
Similarly, TDFs are too risky. We learned this lesson in 2008 when the typical 2010 fund lost 25%. Nothing has changed since 2008 so the vulnerable remain exposed to large losses as they near retirement, which is shocking. It's a mistake just waiting to happen (again).
Australia can indeed learn from the mistakes of the US.