FYI: As an advisor, you may gloss over new funds that come into the market, instead relying on your old, established favorites. But in 2015, new funds with less than 12 months of track record accounted for $379 billion, or 73 percent, of new fund flows globally. In a new report, Morningstar analyzes why some new funds succeed and others don’t.
The study found, among other things, that new funds launched during times of high volatility don’t necessarily attract more assets, but they do outperform. New equities funds, for example, generate nearly 1 percent higher risk-adjusted returns during times of economic crisis on a cumulative basis over the subsequent three-year period. Newly launched allocation funds have a 0.52 percent performance advantage
Regards,
Ted
http://wealthmanagement.com/print/blog/funds-launched-times-crisis-outperformM*'s: Lee Davidson: "The Rise and Fall of New Funds: Why Some Funds Succeed And Others Don't." (Click On Download)
https://corporate1.morningstar.com/ResearchArticle.aspx?documentId=760435M*'s Russ Kinnel: "New Funds Generate More Excitement Than Results"
http://news.morningstar.com/articlenet/article.aspx?id=668486Mark Hulbert: "Why New Mutual Funds Are Better" (Click On Article Title At Top Og Google Search)
https://www.google.com/#q=Why+New+Mutual+Funds+Are+Better+wsj
