This paper investigates whether repeat portfolio insurance implemented over the working life time of superannuation saving can offer a solution. Stochastic simulations show that the options-based strategies perform well in comparison to traditional investment practices.
Strategies combining protective puts with age phasing produce the most appealing results.
Download this article. Many thanks to Geoffrey Kingston, John Piggott, Robert Officer and two anonymous referees for their helpful comments. Financial support under ARC Grant A79331125 is gratefully acknowledged. This page was last updated in December, 1997.