Henrik Olejasz Larsen - Morningstar

Non-persistence of performanceOur experienceand academicstudies pointto lowpersistence ofperformance…On US mutual funds:“…only 5.16% of large-cap funds, 3.21% of mid-capfunds and 5.10% of small-cap funds maintained atop-half performance over five consecutive 12-month periods. Random expectations would suggesta repeat rate of 6.25%”S&P Dow Jones (Dec 2012): “Does past performance matter?The Persistence Scorecard”On Danish mutual funds:“We conclude that in general Danish mutual fundsperform neutrally, returns are non-persistent and(they) have no timing ability”Christensen (2005): “Danish Mutual Fund Performance,Aarhus School of Business6