Switching between superannuation funds: Does performance and marketing matter?

Xiaowen Peng, Karen Alpert and Grace Chia-Man Hsu

Pacific-Basin Finance Journal, 2020, vol. 63, issue C

Abstract: This study examines the roles of fund performance and marketing in superannuation members' fund switching activity in Australia. Using member-nominated transfers from a unique data set of Australian Prudential Regulation Authority (APRA)-regulated superannuation funds from 2005 to 2014, our results indicate that members who switched funds do not chase after superior short-term returns but they do punish bad performers by withdrawing investments. We find a consistent positive relation between marketing effort and investor choice for retail funds, which engage in extensive marketing. However, marketing does not appear to be an effective strategy for industry-based funds to attract investments.

Keywords: Superannuation; Retirement; Pension; Investment choice; Fund flow-performance; Individual investors (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:63:y:2020:i:c:s0927538x20302687

DOI: 10.1016/j.pacfin.2020.101431

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