Husselbee: Let's change the performance conversation

'Recalibrate expectations'

An important part of being a fund selector is keeping up with the industry's innovations and one of the best places in the world to do that is the annual Morningstar conference.

I was lucky enough to attend this year's event in Chicago back in June and saw a range of speakers from across the spectrum. As anyone familiar with our investment process will know, one of our core beliefs is that, while consistency of performance is ultimately impossible, consistency of approach - at least for our chosen managers - is vital. With that in mind, one of the most interesting sessions for me focused on Morningstar's efforts to improve performance measurement, proposing two new metrics called ‘longest underperformance' and ‘outperformance periods' (LUP and LOP, respective...