Statistics

An IFA Internal Study of the Futility of Manager Picking

Statistics

IFA performed its own study of the persistence of manager performance using Morningstar data. As the charts below show, would-be manager pickers face daunting odds of finding a manager who will consistently deliver above benchmark performance. Indeed, the numbers could not be more clear—past performance is no guarantee of future results.

Note: The sample size in the chart above is based on the number of actively managed funds in the Morningstar categories/equity style boxes of large blend, large growth, large value, small blend, small growth, and small value with the same manager for at least 2 years.

Note: The sample size in the chart above is based on the number of actively managed funds in the Morningstar categories/equity style boxes of large blend, large growth, large value, small blend, small growth, and small value with the same manager for at least 6 years.

Note: The sample size in the chart above is based on the number of actively managed funds in the Morningstar categories/equity style boxes of large blend, large growth, large value, small blend, small growth, and small value with the same manager for at least 10 years.

Note: The sample size in the chart above is based on the number of actively managed funds in the Morningstar categories/equity style boxes of large blend, large growth, large value, small blend, small growth, and small value with the same manager for at least 20 years.