POWERED BY MOMENTUM MEDIA
Colleagues big influencer in super investment strategies
When people make active decisions about their superannuation investment strategies, the decisions of their co-workers can be influential in their choices, Monash Business School has found.
The Monash study, which was based on data on 28,031 members provided by Mercer, found that, when people do actively engage with their superannuation investment strategy, it would likely be influenced by conversations or perceptions about what others in their workplace do.
Dr Carly Moulang, of the Monash Department of Accounting, said that utilising colleagues’ experience and knowledge in making super choices showed the role identity economics played in financial decisions.
“Observing others and making social comparisons may help alleviate the uncertainty individuals experience when making complex decisions such as those related to superannuation investment choices,” she said.
Moulang said that this gave some strong indications to super trustees on how improving financial literacy regarding retirement and investments in the workplace could have a stronger flow-on effect than just on an individual basis.
The study also found that women were more likely to be active in making superannuation decisions when in female-dominated workplaces, but reduced engagement with super when part of a female minority.
Moulang said that employers needed to better understand how gender balance could impact employees’ engagement with their superannuation investments strategy.
“If women are in a male-dominated workplace they may need more assistance and engagement to help them make informed decisions as they are not necessarily relying on their peers in those situations,” she said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
