The folks are Morningstar
are working on a new way to present rolling returns data to mutual fund investors. The Chicago-based firm hopes to unveil the new rolling return graphic next year, reports
the Associated Press'
The graphic will show how often a fund has placed in the top quartile in its peer group over three-year periods, and how often it landed in the second, third and bottom quartile.
The aim, says Morningstar director of fund analysis Karen Dolan, is to give individual investors "an easier way to digest rolling returns. At times like now, they're worth considering, because the trailing returns don't tell the whole story."
Some investors, for instance, might be scratching their heads looking at current three-year and five-year return numbers. That's because three-year figures do not include the period of the market meltdown in September and October 2008, but include the market recovery that started in March 2009, whereas five-year numbers incorporate all the market ups and downs dating back to late 2006.
In his article, Jewell reminds investors that rolling returns offer a more balanced picture for looking at performance.
Armie Margaret Lee
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