IMPORTANT INFORMATION

Collection of survey information can be an effective way to gather empirical evidence into people’s decision-making. Surveys can sometimes show results that do not accord with our initial expectations, thereby creating an opportunity to learn more about how the human mind works, and to find ways to apply that knowledge to benefit individuals who are likely to make similar decisions in a real-world context. Survey design is an important consideration, because often people do not pay attention to relevant information. When they ignore relevant information they can make mistakes that, were they aware of the relevant information, those mistakes would not have been made, mistakes that can create real economic costs for individuals, industries and countries. To test whether you are still paying attention, please ignore the first question below and skip straight to the second question. The results of this survey will therefore provide an indication of survey participants’ willingness and ability to pay attention to relevant information.

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* 1. When it comes to investing, how would you describe your attention to detail?

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* 2. If you had $100,000 to allocate to the following two Australian equity managers (based solely on their past investment performance relative to the benchmark), how much would you allocate to each of Manager A and Manager B?

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* 3. Based only on the following information, on a scale of 1 to 10, where 1 is ‘very unlikely’ and 10 is ‘very likely’, how likely would you be to consider the following as a potentially suitable investment opportunity.

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 4. At a recent investor conference you had the opportunity to speak one-on-one to a leading Australian portfolio manager. You asked him about the risk of the re-emergence of global inflation.

You had a brief and friendly conversation. He explained his views on inflation and what it meant for markets. Overall you were impressed by his level of insight.

On the basis of this information, on a scale of 1 to 10, where 1 is ‘very unlikely’ and 10 is ‘very likely’, how likely would you be to consider using this asset manager?

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 5. Behavioural finance research shows that both individual and professional investors can be subject to a range of decision-making biases. They include biases in financial forecasting, in individual stock-selection decisions, and in portfolio construction decisions. They include decisions made by individuals, as well as by groups or teams (sometimes referred to as ‘group think’). Sometimes the impact of these biases can be substantial.

On a scale of 1 to 10, where 1 is ‘not at all important’ and 10 is ‘very important’, if you were to choose an asset manager, how important do you think it is that they are able to demonstrate that they have data and processes that effectively mitigate or overcome these potential biases?

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 6. On a scale of 1 to 10, where 1 is ‘very poorly’ and 10 is ‘very well’, how well do you think asset managers that you are aware of have been able to demonstrate that they have data and processes that effectively mitigate or overcome these potential biases?

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 7.
Haru (shown above) started his hedge fund just over 5 years ago. By applying recent advances in machine-learning and the quantitative analysis of long-term pricing signals derived from big data, he has so far substantially outperformed other funds in both absolute terms, and on a risk-adjusted basis.

Haru credits his success to going the extra mile – his tenacity in tracking down investment insight in hard-to-find places. However, his colleague say that while this is true, that he is also the smartest person they have ever worked with.

Based only on this information, on a scale of 1-10 where 1 is ‘not at all’, and 10 is ‘very much’, how much would you trust this asset manager?

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 8. Based on the information in the previous question, on a scale of 1-10 where 1 is ‘not at all’, and 10 is ‘very much’, how competent do you think this asset manager is?

1 10
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i We adjusted the number you entered based on the slider’s scale.

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* 9. Can we please have your email address to send you the results?

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