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
Janus Henderson acquires NBK Wealth, Tabula Investment Management
|Janus Henderson has acquired the wealth management arm of the National Bank of Kuwait, NBK Wealth, as well as European ETF provider, Tabula Investment Management.
ART names advice and education leads
|Australian Retirement Trust (ART) has revamped its advice, guidance and education team and created two new leadership roles.
Men, women in same occupation drive pay gap
|A whopping 80% of the gender pay gap can be attributed to women being paid less than men within the same occupation, a new economic analysis shows.
Macquarie Group profits falls 32% to $3.52bn
|Macquarie Group has reported a net profit of $3.52 billion for the year ending 31 March 2024, a 32% decrease from the previous year.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
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.