Herman Brodie - Unlocking the Power of Trust
Standard Deviations with Dr. Daniel Crosby
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How Does Past Performance Affect Asset Management?
Past performance is positively related to the flow of assets to and from asset managers, but its explanatory power is not very strong. We looked at all the data concerning the flow of funds in and out of fund management firms. And it didn't explain a great deal. So we then turned to the self-reported surveys of scores of fund sponsors and investment consultants,. To see the way that they form their expectations about managers' future performance. And also to see the extent to which those expectations really drove selection decisions. Then we compared them to the accuracy of those expectations between the asset managers' realized performance.
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