Abstract
This study examines how the termination of superannuation investment mandates
contributes to the departure of top fund managers in companies delegated the
portfolio management role. Terminations of superannuation plan mandates
increase the probability of a fund company changing the responsible fund
manager. Objective-adjusted returns are also significant managerial turnover
considerations. These results illustrate that significant losses of superannuation
fund clients act as an external control mechanism in the investment management
industry that complements internal managerial performance measures.