“While several studies have pointed to consistent outperformance by some funds, we have just seen the end of a long stock market upswing. Our study includes fund returns during the downturn of 2008,” Rafferty said

 “I think the results are likely to surprise many people, because it has been said that everyone is a genius in a stock market boom. Even though performance analysis tries to adjust for risk, a booming stock and property market meant that we were looking at a quite special period. It’s much harder to outperform over a long period that includes a boom and a bust.”

This research is significant for superannuation members and policy makers.  “It is important to stress that even quite small differences in returns, if sustained, will add up to significant differences in final retirement benefits.”

Visit www.aist.asn.au to register at CMSF09 Conference of Major Superannuation Funds.