John Husselbee: Persisting with unicorns

Patience must be a watchword

clock • 5 min read

In more than 30 years of analysing fund managers across the world, one of the most important lessons I have learned, writes John Husselbee, is consistency of performance is close to impossible over any decent timeframe.

Despite this, and repeated warnings about relying on past performance as a measure of future success, we continue to see a raft of studies based on consistency, showing which managers have been able to post outperformance over consecutive years. As very few can show such consistency year after year, this has been used as evidence to support a passive approach. With this is mind, I was interested to read new research form Morningstar, under the intriguing title of Quit chasing unicorns: consistent fund performance is overrated, taking aim at exactly this kind of consistency-based data, su...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Multi-Asset

MPS Watchlist: Helping advisers navigate the sector

MPS Watchlist: Helping advisers navigate the sector

Professional Adviser analyses what Consumer Duty means for MPS

Professional Adviser
clock 16 February 2024 • 1 min read
Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Tara Jameson, Co-Manager of the Schroder Global Multi-Asset Portfolios
clock 08 November 2023 • 8 min read
Partner Insight: How interest rate moves drive bond returns

Partner Insight: How interest rate moves drive bond returns

Markets might have got their interest rate outlook wrong, but the case for holding global bonds as part of a multi-asset portfolio remains as strong as ever.