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St. Louis Public Schools Retirement System. A DEEPER LOOK AT EVALUATING INVESTMENT PERFORMANCE. Top performing money managers typically beat not only their comparative style index but also exhibit above median performance in their peer group for longer periods (i.e. 5 years+).
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A DEEPER LOOK AT EVALUATING INVESTMENT PERFORMANCE • Top performing money managers typically beat not only their comparative style index but also exhibit above median performance in their peer group for longer periods (i.e. 5 years+). • Active managers should not be expected to outperform in every month, quarter, or year. However, persistent underperformance (i.e. 5 years+) should warrant concern and a re-investigation of the manager’s process, philosophy and people. • As of 6/30/08, SLPSRS engaged 6 traditional managers with below-median peer returns for the trailing 5 years. These managers oversee a combined $197 million under management.* Three of the six underperformed more than 70% of their peers in that timeframe. *Source: PSRS Investment “Flash” Report, dated 6/30/08 and PSN. Past performance is not indicative of future performance.
WORST CASE SCENARIOS • Six of the equity managers (totaling $197 million in assets) have below median performance for the 5 years ending 6/30/08. • Using only those manager’s returns and calculating the difference between their returns and the return of the median of each manager’s peer group, the dollar return differential was $9 million over 5 years. *Source: PSRS Investment “Flash” Report, dated 6/30/08 and PSN. Past performance is not indicative of future performance.
