This paper establishes the contribution made by the establishment and operation of a local stock exchange to the economic development of Southeast Asian (SEA) countries.Specifically, the paper informs investors and policy makers about the current status of SEA stock market development and the associated positive and negative effects of such initiatives. Policy makers have placed a clear focus on SEA stock markets as a primary driver of regional economic growth. However, it is questionable whether SEA is ready for such an ambitious economic initiative, particularly given the reported negative effects of lesser-developed stock markets in the literature. Despite the reported negative implications in the literature, the benefits appear to outweigh the costs for SEA stock markets. It is perceived that SEA stock markets will drive further economic reform, financial liberalisation and market integration, promising tremendous benefits for both the region and international investment community. The paper concludes with questions regarding the efficiency of stock markets in SEA and offers recommendations for further empirical research.2
Purpose
The purpose of this paper is to showcase empirical findings in the literature relating to Australian superannuation fund performance in the pre-reform period, from 2000 to 2014.
Design/methodology/approach
The authors synthesize Australian superannuation performance studies in an attempt to identify empirical approaches employed in the academic literature, showcase findings and uncover themes for future research.
Findings
The review highlights the following findings in the literature: actively managed “retail” superannuation funds appear to underperform passive index and/or portfolio approaches; high management fees and preference for liquid, less growth-orientated assets may be further undermining performance. It also reveals the need for future research to assess whether the recent government inquiries and the related reformative measures have achieved the desired effect of improving the Australian superannuation system. The authors therefore identify three areas of investigation that will cater for this research need: the fund performance of not-for-profit fund and self-managed super fund; the efficiency of super funds; and the appropriateness of wholesale fund benchmarks.
Originality value
It is expected that superannuation fund performance will be subject to heightened scrutiny to assess the effectiveness of recent legislative changes resulting from the Stronger Super reform and other public inquiries. This study provides a timely, substantive and informative review of empirical findings pertaining to Australian superannuation performance in the pre-reform period to assist researchers looking to conduct further empirical research on this topic.
With a market capitalisation of over $1.84 trillion dollars and large annual flows, the Superannuation Guarantee has been regarded as the backbone of Australia's retirement policy scheme and a primary driver of economic growth. However, losses encountered in the aftermath of the global financial crisis led to a major review of superannuation, mainly in response to the lack of accountability, comparability, and transparency discovered within ‘default’ investment options. An outcome of this review was the MySuper initiative, which imposes obligations on fund providers to reconfigure their default investment strategies in accordance with new regulatory requirements. Despite these policy reforms, other challenges remain, such as gender inequality, excessive superannuation fees, low financial literacy, and lack of member participation in growing retirement savings. The paper provides a review of literature pertaining to the background, significant policy changes, and ongoing development of the Australian superannuation system. We emphasise the role of superannuation in the economy; characteristics of the industry, plans, and funds on offer; recent policy initiatives; and perceived inadequacies of the system. The paper concludes with possibilities for further empirical research.
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