Jennifer Lang

Without a safety net

I was over in NZ for a meeting today, and for the first time ever, didn’t change any money. So I spent the whole day in a foreign with absolutely no cash! It did feel a bit scary (particularly when my diners card was refused at the airport), but it was fine. Either that means…

Coffee

Yes, I admit, I am addicted to coffee. But my addiction means that it’s one of the few consumer items that I instantly know the price of. So my theory is that the price of coffee is quite closely related to the demand. The smaller the overall demand level, the more price inelastic the remaining…

Super choice – winners and losers

The retail investment press is full of articles about super choice these days. Depending on the ideological slant, they are either along the lines of “what a wonderful thing superannuation choice will be – it will give people the chance to choose something that suits them, and Occasionally, an article makes it in about insurance,…

Risk transfer

The Economist (subscription only) had an article in its recent survey of banks on the new and increasingly tight regulation of banks world wide. “Medieval engineers built many daunting castles with thick walls and redoubts that made them seem impregnable to the armies of the day. But sooner or later they were destroyed or simply…

Fee rate illustrations

Superannuation choice is leading to a new round of interest in fee disclosure for superannuation (and other managed fund products). The latest argument is (as usual) between industry funds and the retail funds. The industry funds have put together a piece of advertising showing the impact of the current difference in annual fee on a…