STUDY: HIDDEN BIAS IN MORNINGSTAR DATA “SYSTE MAT ICALLY AND SIGNIFICANTLY” OVERSTATES MANAGED MUTUAL FUND PERFORMANCE

Savant Capital/ZAG Analysis Makes Strongest Case Yet for Low-Cost Passive Indexing; “Survivor Bias” Distorts Returns in 41 of 42 Morningstar Categories Over 10-Year Period.

2006-03-29 - Rockford, IL

More bad news for actively managed mutual funds: A “survivor bias” in the Morningstar mutual fund data relied upon by most individual investors and financial advisors has the effect of “systematically and significantly” overstating the performance of actively managed mutual funds relative to their related indexes for the 10-year period from 1995-2004, according to a major new study to be released today by Savant Capital Management Inc., of Rockford, IL., and the Zero Alpha Group (ZAG).

Download(s): Study: Hidden Bias in Morningstar Data ' Systematically and Significantly' Overstates Managed Mutual Fund Performance1

URL: http://savantcapital.com