News & Insights

2023 Q2 Commentary - Simply the Best?

02 August 2023, Graham Harrison

Simply the best?

Whether browsing the financial press, reviewing proposals from discretionary investment managers or comparing fund factsheets, it seems that all managers are able to make the claim that their investment performance is better than the competition.

Can all managers be “simply the best”? In this article we consider some of the differing factors involved in making performance comparisons and whether these factors can explain why, anecdotally, all managers seem to have outperformed.

Key Takeaways:

  1. The Impact of Time Periods: Discover how the selection of time periods for performance presentation can affect the perceived performance ranking of investment managers.
  2. Interpreting Performance Data: Gain a deeper understanding of the performance data presented by managers. Our commentary reveals how the diversity of outcomes from a single manager can influence their overall performance ranking.
  3. The Significance of Risk Equivalence: Learn about the crucial role of risk equivalence in performance comparisons. Our commentary illustrates how the same portfolio can have different quartile rankings depending on the risk category it's compared against.
  4. Contextualising Performance: Our commentary emphasises the importance of context in interpreting performance rankings, highlighting the need to consider factors such as start and end date dependency, dispersion of returns, and risk equivalence.

Unearth these insights and more. Download our commentary now to deepen your understanding of investment performance rankings.

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