Calling the race before it is run
Outsider has always found Industry Super Australia chief executive, David Whiteley, an amusing fellow and has quietly admired his ability to deliver a colourful polemic.
However, he thinks Whiteley was barking up the wrong tree when the industry funds head last week was calling for an inquiry into why industry funds had outperformed retail (call that ank-owned funds) in the latest round of data released by research and ratings houses such as Chant West and SuperRatings.
Outsider reckons Whiteley should have taken the time to read the Chant West analysis a little more closely, because Warren Chant had made the reasons crystal clear, therefore obviating the need for an inquiry.
To help young David, Outsider directly quotes the following from Chant West:
"The industry funds' particularly strong outperformance over the year to March 2016 is mainly due to their higher allocations to unlisted assets such as unlisted infrastructure, unlisted property and private equity which have outperformed listed markets over the period. Australian and international share markets, which are down 9.3 per cent and 4.4 per cent, respectively, over the past year, are marked to market. However, unlisted assets are valued infrequently with their valuations typically lagging listed markets by six to nine months."
Let's talk again in six to nine months, David.
AUTHOR
The Outsider
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