Individual Investor Portfolio Performance in Retirement Savings Accounts

36 Pages Posted: 27 Apr 2013

See all articles by Su (Sally) Gan

Su (Sally) Gan

The University of Western Australia

Richard A. Heaney

University of Western Australia

Paul Gerrans

The University of Western Australia - UWA Business School

Multiple version iconThere are 2 versions of this paper

Date Written: April 26, 2013

Abstract

We analyse the investment performance of a large sample of individuals investing in discretionary retirement savings products offered by a large Australian financial institution. This is of interest from the perspective of market efficiency and the ability of individuals to over or under-perform asset pricing models. It is of interest to the individuals in terms of reflecting the consequence of their trading behaviours and effectiveness in accumulating retirement savings. It is of particular interest to policy makers given the tax concessions that retirement savings attract in the expectation that successfully managed retirement investments will provide a retirement income and reduce the call on retirement income support from the government. We find the choice of performance measure is important in considering results. We do not find gender differences as has previously been reported but we do find evidence of a negative relationship between investor age and performance. Those residing in wealthier postcodes perform better. In terms of investment characteristics, wholesale investors perform better whereas those who are the most active perform worse.

Keywords: retirement savings, investment performance, choice, household portfolios, superannuation, 401(K)

JEL Classification: G23, G11, E21

Suggested Citation

Gan, Su (Sally) and Heaney, Richard A. and Gerrans, Paul, Individual Investor Portfolio Performance in Retirement Savings Accounts (April 26, 2013). Available at SSRN: https://ssrn.com/abstract=2256854 or http://dx.doi.org/10.2139/ssrn.2256854

Su (Sally) Gan

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia

Richard A. Heaney

University of Western Australia ( email )

Crawley
Perth, Western Australia 6009
Australia
0414700799 (Phone)

Paul Gerrans (Contact Author)

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia
61 8 64882910 (Phone)

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