Does Past Performance Matter? S&P Persistence Scorecard

9 Pages Posted: 9 Jun 2012 Last revised: 12 Jun 2012

Aye M. Soe

Standard & Poor's

Frank Luo

Standard & Poor's

Date Written: June 7, 2012

Abstract

The phrase “past performance is not an indicator of future outcomes” (or some variation thereof) can be found in the fine print of most mutual fund literature. Yet due to either force of habit or conviction, investors and advisors consider past performance and related metrics to be important factors in fund selection. So does past performance really matter?

To answer this question on a continuous basis, the S&P Persistence Scorecard, released twice per year, tracks the consistency of top performers over yearly consecutive periods and measures performance persistence through transition matrices.

Keywords: Mutual Fund, Performance

JEL Classification: G11

Suggested Citation

Soe, Aye M. and Luo, Frank, Does Past Performance Matter? S&P Persistence Scorecard (June 7, 2012). Available at SSRN: https://ssrn.com/abstract=2079822 or http://dx.doi.org/10.2139/ssrn.2079822

Aye M. Soe

Standard & Poor's ( email )

London EC2M 7NJ
United Kingdom

Frank Luo (Contact Author)

Standard & Poor's ( email )

55 Water Street
New York, NY 10041
United States
212-438-5057 (Phone)

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