Are retail or institutional investors better at getting performance out of their funds? The answer turns out to be neither! After an examination of investor returns versus NAV returns for various share classes, Morningstar comments:
One thing is clear: Across the board, investor returns are lower than total returns. Regardless of sales channel, the data don’t provide evidence that advisors and institutions do an excellent job timing their moves while other channels are rife with fickle investors. In aggregate, they’re all losing money to poor timing.
Thrashing around doesn’t help. Study the various available return factors and then stick with your program. We like relative strength because of its historical performance and great adaptability, but other factors work as well. In particular, deep value mixes nicely with relative strength.
Posted by Mike Moody 
