browser Warning Icon You are using an older version of Internet Explorer. You are viewing this site with limited functionalities.
Persistence Scorecard Does past performance matter?
BY Berlinda Liu

SUMMARY OF RESULTS



• The S&P Persistence Scorecard attempts to distinguish a manager’s luck from skill. One key measure of successful active management lies in the ability of a manager to outperform his peers consistently.



• This report’s results show that, irrespective of asset class or style focus, few fund managers consistently outperformed their peers.



• For funds categorized as top performers in September 2017, 47% maintained their top-quartile performance the subsequent year. However, there was a dramatic fall in persistence afterward—just 8% of domestic equity funds remained in the top quartile in the three-year period ending September 2019. This result (8%) is consistent with the notion that historical performance is only randomly associated with future performance.



• Smaller-cap equity funds recorded lower persistence compared with results from six months prior—mid-cap persistence dropped to 7% from 14%, and small-cap funds sank to 11% from 23%.

Download Full Article (460K)
close

Sign up for email updates

Get our latest insight on the markets.

Thank you for subscribing!