Michael Drew

Hedge Funds

The danger of set-and-forget equity strategies in retirement

The long-term equity risk premium (ERP) has a much higher degree of volatility than established thinking holds to be true, according to new research by Drew, Walk & Co. It claims while the average ERP in Australia is around 6 per cent (though it has been below its long-term average since 1990) the wide distribution […]

Target date funds; the start of a big adventure

This article contains the views of AMP, Mercer, ASIC, Frontier Advisors and Michael Drew professor of finance at Griffith Business School on the subject of target date funds. Three to four million Australians are about to embark on a very exciting experiment. They are to choose a date when they envisage finishing work and then […]
Investment Strategy

First State Super no longer a traditional investor

First State Super will see its internal investment team rise from 12 to around 22 people over the next six months as part of a push for a more dynamic approach to opportunities. The broader internal expertise is intended to help make smarter decisions on strategic asset allocation and in the choice of fund managers, […]

Running with the herd

Michael Drew, like many finance professors, played sport at school. One year he won two coveted cricketing trophies at the end-of-season awards: best and fairest player, and batsman with the highest average-run score. But these achievements did not reveal the full story about Drew’s sporting prowess. “We never won a game and my batting average […]
Hedge Funds

Super system needs new frame to manage outcomes

Dr Ken Henry’s comments at the Association of Superannuation Funds of Australia (ASFA) Investment Interchange debate entitled ‘Should the super industry invest more in fixed interest?’ have re-ignited the discussion about the optimal portfolio mix of stocks and bonds in a superannuation account. His comments are important in that they strike at the heart of […]
Investment Strategy

QIC shutters boutique

Queensland Investment Corp., which manages about $59 billion in assets, has shut a unit that seeks to protect superannuation fund members’ balances because of its poor capital raising prospects due to a perceived delay in the implementation of MySuper.