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In the media - New Model Adviser

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In the media - New Model Adviser

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We are very committed to the development of the financial services profession and often comment on financial related matters in the national press. Below is a link to an extract from our most recent article:

Alan Smith our CEO recently wrote in the New Model Adviser, commenting on the importance of taking into consideration failed funds when doing performance analysis.

“…Survivorship bias can lead to over-optimistic beliefs because failures are ignored, such as when companies that no longer exist are excluded from analyses of financial performance. It can also lead to the false belief that the successes have a special property, rather than being just lucky.

Many fund statistic studies only include funds in existence today, and this has material impact on the number of funds beating the market. In Europe, around 3,500 funds have been launched in each of the past 10 years and 2,400 have closed. Fund groups tend not to close down successful, high-performing funds.”

Check back on this blog for future media comment from Alan Smith and the team at Capital Asset Management.

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