TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth OFF-SIDE! While televised live sport can be really exciting at times, there's also large periods of inactivity; when the referee awards a penalty, the clock off for an injured player to receive treatment, or the sulking crawl of a player moping from the field and into the sinbin. If you're still paying attention during these moments, you may notice the commentators attempts to fill these pauses in play by quoting the most obscure and ridiculous of facts about the teams going to head-to-head or the players on the field. For example, this is the third time in history that the away team have gone into the second half with a 10-point lead, on a Sunday, following a 7-week run of straight defeats, the captain out on injury, and a humidity level of 20%. Perhaps what the statistician is really saying here is they've found a way to meet their KPI and get their end of month bonus. The clutching at straws to demonstrate a point is similar to the marketing tactics used in the investment industry, most commonly by the industry superannuation funds (when they're not making shapes with their hands to a Paul Kelly tune). How many ads have you seen, often aired during the football, where the industry fund claims to be the "best performer" of all superannuation funds? That's a bold claim, but if you look at the fine print you'll see they're referring to the performance of just one of their investment options from their suite of many, over a certain time frame, beginning and ending in a random month of the year. The frustration with these unreliable claims is that people often hinge the overall suitability and/or success of their own superannuation funds on the outlandish headlines of these advertising strategies, whether accurate or not. Included in any decent and transparent report will be a reference to a benchmark, which is a tool designed to allow for standardised evaluation or comparison. Benchmarks serve as reference points, allowing you to compare your returns against a relevant comparative - there is no point in comparing performance outcomes of a high growth option against a competitor's conservative option, this will only give you a false sense of success. However, benchmarks are not without their limitations, they are only backward looking, and overreliance on them can lead to short-term thinking or the overlooking of other important factors. When the annual statement for your superannuation fund arrives shortly, instead of comparing your performance against the out-there claims heard on the telly and getting either really excited or really down, have a look at the benchmark outcomes across all timeframes and make an informed evaluation. You may even be able to complete this task during one of the many breaks in play during the footy. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth OFF - SIDE ! While televised live sport can be really exciting at times , there's also large periods of inactivity ; when the referee awards a penalty , the clock off for an injured player to receive treatment , or the sulking crawl of a player moping from the field and into the sinbin . If you're still paying attention during these moments , you may notice the commentators attempts to fill these pauses in play by quoting the most obscure and ridiculous of facts about the teams going to head - to - head or the players on the field . For example , this is the third time in history that the away team have gone into the second half with a 10 - point lead , on a Sunday , following a 7 - week run of straight defeats , the captain out on injury , and a humidity level of 20 % . Perhaps what the statistician is really saying here is they've found a way to meet their KPI and get their end of month bonus . The clutching at straws to demonstrate a point is similar to the marketing tactics used in the investment industry , most commonly by the industry superannuation funds ( when they're not making shapes with their hands to a Paul Kelly tune ) . How many ads have you seen , often aired during the football , where the industry fund claims to be the " best performer " of all superannuation funds ? That's a bold claim , but if you look at the fine print you'll see they're referring to the performance of just one of their investment options from their suite of many , over a certain time frame , beginning and ending in a random month of the year . The frustration with these unreliable claims is that people often hinge the overall suitability and / or success of their own superannuation funds on the outlandish headlines of these advertising strategies , whether accurate or not . Included in any decent and transparent report will be a reference to a benchmark , which is a tool designed to allow for standardised evaluation or comparison . Benchmarks serve as reference points , allowing you to compare your returns against a relevant comparative - there is no point in comparing performance outcomes of a high growth option against a competitor's conservative option , this will only give you a false sense of success . However , benchmarks are not without their limitations , they are only backward looking , and overreliance on them can lead to short - term thinking or the overlooking of other important factors . When the annual statement for your superannuation fund arrives shortly , instead of comparing your performance against the out - there claims heard on the telly and getting either really excited or really down , have a look at the benchmark outcomes across all timeframes and make an informed evaluation . You may even be able to complete this task during one of the many breaks in play during the footy . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au