The Unfair Comparison

Abstract:     
This paper discusses the rooms for improvement for comparison of fund manager performance with market index benchmark after considering the factors of bid ask spread, market impact, slippage, survival bias, taxation, forex spread, forced buying, cash drag, forced cash in, transaction cost, net of fee, investment mandate, and risk control.

Number of Pages in PDF File: 7

Keywords: benchmark, market index, comparison, investment, fund performance, fund accounting, performance attribution, bid ask spread, market impact, slippage, survival bias, taxation, forex spread, forced buying, cash drag, forced cash in, transaction cost, net of fee, investment mandate

JEL Classification: M49

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