Daily unit pricing undermining long-term investing
Several investment managers at the Investment Management Consultants Association’s annual conference in Sydney have questioned the value of daily unit pricing, saying it undermined the development of a sense of long-term investing in the investor community.
During a panel discussion on the current state of the investment and superannuation industry, Sean Henaghan, an investment director with AMP Capital Investors, said that daily unit pricing was “inconsistent” with the aims of the investment industry, which was to foster a commitment to long-term investing. Current market volatility has caused unit prices to fluctuate wildly during trading.
The chief investment officer at First State Super, Mark Sainsbury, said the superannuation industry either had to commit to daily unit pricing or drop the idea, and that if they tried to have both options, it was obvious that they were protecting their own interests and not those of the members. He said if the superannuation industry didn’t want to lose members, it had to develop a sense of trust with its members.
Henaghan also warned investors against making strategic decisions based on the current market environment, saying they had to be careful with their investments.
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