Hmmm ... from Business Spectator ... why fixed income is a better bet than shares for Super Funds.
"In 1987 you would have lost 44 per cent of all your money. Over 2002-03 you would have lost 15 per cent. (If you had global shares, you lost another circa 50 per cent during the 2001 ?tech wreck?.) And then you were down 48 per cent over 2007-08. These enormous draw-downs mean that if you get your timing wrong with shares, you can earn nothing for years."
"For years now I have highlighted the hazards of shares compared with safer fixed-income alternatives. I?ve been especially critical of super fund asset allocations, which typically commit around 60-70 per cent of all their money to highly correlated Australian and global shares, and then throw another 10 per cent into private equity and hedge funds."
