Research Review:  Performance track records

Compiled by PortfolioConstruction Forum | 07 March 2013

What is an appropriate performance track record for a fund before it should be considered for use in a model portfolio? Is three years appropriate? If so, why? If not, why?

Lonsec

The three-year track record requirement is a handy rule-of-thumb for dealer groups when deciding whether to add a fund to a portfolio. However, as is often the case with rules-of-thumb, the reality is more complex and other factors should also be taken into account ...