TY - UNPB

T1 - Evaluating the financial performance of pension funds: an individual investor's perspective

AU - Klumpes, P J M

AU - McCrae, M

PY - 1998

Y1 - 1998

N2 - We apply an individual investor s perspective to empirically examine the economics and determinants of the financial intermediary fee or spread which affects the financial performance of a sample of 66 defined contribution and 54 defined benefit Australian pension funds during 1991-93. We find that the intermediary spread is non-trivial and causes the average net return provided to individual investors to be significantly less than that earned by the financial intermediary on the pension fund portfolio. Factors affecting the demand for pension fund reputation as financial intermediary and the marginal fee for this reputation reflect underlying structural differences between these types of fund.

AB - We apply an individual investor s perspective to empirically examine the economics and determinants of the financial intermediary fee or spread which affects the financial performance of a sample of 66 defined contribution and 54 defined benefit Australian pension funds during 1991-93. We find that the intermediary spread is non-trivial and causes the average net return provided to individual investors to be significantly less than that earned by the financial intermediary on the pension fund portfolio. Factors affecting the demand for pension fund reputation as financial intermediary and the marginal fee for this reputation reflect underlying structural differences between these types of fund.

M3 - Working paper

T3 - Accounting and Finance Working Paper Series

BT - Evaluating the financial performance of pension funds: an individual investor's perspective

PB - The Department of Accounting and Finance

CY - Lancaster University

ER -