16 August 2004

Vanguard Investments Australia Ltd and FinaMetrica Limited are jointly sponsoring an Australian Research Council grant application through Monash University.

The three -year project involves investigation of investor behaviour in risky situations with particular emphasis on risk tolerance issues including the consequences of an ageing population , gender and the impact of major (world) events.

Vanguard and FinaMetrica will provide financial and in-kind support totalling $166,000 for a PhD student to be supervised by Professor Robert Faff, Professor of Finance and the Director of Research, Department of Accounting and Finance, Faculty of Business and Economics, Monash University.

"In the US Vanguard has a long history of supporting and promoting research into investor behaviour with the aim of helping investors make better informed decisions. This project will allow us to test some of the findings in the US with Australian investors," the Head of Retail at Vanguard, Robin Bowerman, says.

"FinaMetrica has historically been research-oriented and we are pleased to support this project", said FinaMetrica's CEO, Geoff Davey. "The better the financial services industry understands consumer behaviour, the better we will be able to service our clients."

"Monash University is proud to be teaming with FinaMetrica and Vanguard on this important area of research", said Professor Faff. "The project hopes to deliver important insights into long -term investment decision-making in the context of an ageing population, increasingly dominated by longer living women."

For further information, contact

Robin Bowerman,

Head of Retail,
Vanguard Investments Australia Ltd,

Geoff Davey,

CEO,
FinaMetrica Limited

Robert Faff,

Professor of Finance and the Director of Research,
Department of Accounting and Finance,
Faculty of Business and Economics,
Monash University