Past performance can be an educational tool for investors

The past keeps resurfacing as a central issue in the financial services industry - and by this we do...

The past keeps resurfacing as a central issue in the financial services industry - and by this we don't mean the lessons learnt over the years. Past performance and its use in the funds industry has been a hotly debated subject for many years. Its usefulness in selecting funds has been discussed at length and despite numerous studies into persistency of returns, few concrete conclusions have ever been reached. The issue recently received yet another airing when the FSA put out its requirements for the use of past performance in advertising and promotional materials, effective from 1 June...