REP 22 A review of the research on the past performance of managed funds
Released September 2002, revised June 2003
A report prepared by the Funds Management Research Centre.
The Australian Securities and Investments Commission (ASIC) commissioned the Funds Management Research Centre (FMRC) to provide a report on research findings in relation to the performance of managed investment funds. This report would assist an ASIC project on how past performance information is used in investment marketing.
The central issue is ‘how useful is past performance information when consumers (or their advisers) are selecting an Australian managed fund?’
In this paper we undertake an extensive review of the academic literature on the ‘persistence’ of managed fund performance.