http://afr.com/p/national/super_fund...KVaQpIhl0LmbVNFormer Treasury secretary Ken Henry has called for a radical rethink of the investment strategy of the $1.3 trillion superannuation sector, urging investors to reduce their exposure to shares and increase bond holdings.
Dr Henry, who is drawing up the government’s Australia in the Asian Century White Paper, said the reluctance of fund managers to invest in corporate bonds and the lack of a local bond market had left retirement incomes exposed to volatile shares and increased the economy’s reliance on offshore financing.
Very true, I do not have the bar chart at the moment, but Australia far more than any other country invests almost all of it's super in shares. Most countries invest largely in bonds and other safer fixed-interest.
I wonder how much money we lost as a nation during the GFC because of this? How much are we going to lose in the future? How much money are incompetent fund managers stealing for shorting darts? With the worldwide credit bubble well and truly over, there should be no argument to signing away your money to idiots who want to put it in the stock-market.
Ken Henry is a gold-mine of good ideas. Too bad the government never implements any of them - our economy would be in far better shape if they did.