trendee, you are spot on in a lot of what you said. However, most 'default managers' will probably adjust a bit within ranges but are unlikely to go too extreme one way or another because of the risk of getting timing wrong and / or missing a bounce up. Essentially, although most larger funds / industry funds send info in statements, have websites and call centres etc encouraging members to check how their funds are invested the majority are like your workmates - ignorant. They prefer the headlines, rather than reading their own statements. they are the ones that discover their own apathy and say "I'm going to take control of my super, at least I'll have myself to blame", and start a SMSF and often keep it in cash or buy a hot share tip from Uncle Arthur. Bottom line is most default funds are (rightly or wrongly) gonna stay true to label and within set parameters. I'd prefer they moved a bit more within those parameters but really, it's the members money and the members responsibility, whether they want it or not.
Which brings me to spott, it's very easy to include a period that contains a significant economic event and declare it's TD territory. What fund manager / fund / asset allocation returns do they relate to? It seems quite easy to be clever in hindsight. If it;s such a generalisation then wouldn't a longer timeframe, say 15 years, be more appropriate?
