It has long been said that past performance is not an indicator of future performance. As such, allocating assets to a new manager requires some degree of forecasting in order to estimate how probable it is that they will outperform in the future.
It goes without saying that investors would only want to select managers with the best chance of outperforming.
Hermes Chief Economist: China, Greece and that first US rate hike - not like 1994...
Market risk insights