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Wharton-SMU Research Centre
In-House Seminar
Guest Speaker:
Olivia S. Mitchell
International Foundation of Employee Benefit Plans Professor; Professor of Insurance and Risk Management and Business and Public Policy, The Wharton School, University of Pennsylvania; Executive Director, Pension Research Council; Director, Boettner Center for Pensions and Retirement Research
Date & Venue:
Date: 8 September 2006, Friday
Time: 4pm-5.30pm
Lee Kong Chian School of Business, Networked Seminar Room 1.2, 50 Stamford Road, Singapore 178899
(Location Map)
Topic:
Inattentive Participant: Portfolio Trading Behavior in 401(k) Plans
Abstract:
Most workers in US defined contribution retirement plans are inattentive portfolio managers: only a few engage in any trading at all, and only a tiny minority trades actively. Using a rich new dataset on 1.2 million workers in over 1,500 plans, we find that most 401(k) plan participants in the US are characterized by profound inertia. Almost all participants (80%) initiate no trades, and an additional 11% makes only a single trade, in a two-year period. Even among traders, portfolio turnover rates are one-third the rate of professional money managers. Those who trade in their 401(k) plans are more affluent older men, with higher incomes and longer job tenure. They tend to use the internet for 401(k) account access, hold a larger number of investment options, and are more likely to hold active equity funds rather than index or lifecycle funds. Some plan features, including offering own-employer stock, also raise trading levels.
Registration:
This is a free seminar. Admission is on first-come-first-served. Please register early to avoid disappointment.
To register, please click here
Enquiries:
Ms. Lim Lih Yeng
Email: lylim@smu.edu.sg, Tel: 6828-0197
Ms. Priscilla Cheng
Email: priscillacheng@smu.edu.sg, Tel: 6828-0383
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