What the marketplace thinks is often very different from the reality of the marketplace. This study looks at advisors’ perceptions for the performance of the fund companies they choose to work with and it compares these perceptions to the reality of the performance these companies actually deliver.

What advisors believe is often very different from the reality of the marketplace. This study looks at advisors’ perceptions of the performance of the fund companies they choose to work with and it compares these perceptions to the reality of the returns these companies actually deliver.

The study shows that some companies benefit from a well-designed brand halo while others suffer from an apparently inescapable hangover.

The Realities vs. Perceptions of Performance

Evidence that non-performance dimensions affect advisors’ perceptions

WHAT DOES THIS BRIEF TELL YOU?

  • Advisors usually feel they have a 6th sense regarding the performance their fund suppliers deliver…but that sense is often incorrect.
  • Advisors’ perceptions of a company’s performance are built more on longer-term performance (5-year performance) than on shorter-term (1-year, 2-year and 3-year) performance…but only the most immediate returns data are ignored by advisors.
  • Some companies benefit from riding high on an inflated performance perception cloud while others suffer from irrational performance perception hangovers.