Those invested in low or high equity (regulation 28 compliant, pre-retirement capital) funds and portfolios haven’t been much better off due to disappointing returns over the past five years. These returns can be attributed to a range of factors, with limits on offshore allocations combined with disappointing local equity returns at the fore.
The poor returns have introduced a far higher rate of churning between investments than in previous years. It’s human nature - in times of low returns, investors look at previous winners and switch their investment to include these performers, hoping for the same outcome as in the past.
To quote the legendary Warren Buffet: “The investor of today does not profit from yesterday’s growth”.
As much as we are warned that past performance is no guide to the future results, many investors still switch to the latest hot offerings just before the inevitable slump in performance.