The estimated ARC Index results for November are now available.

Portfolio Survivorship Bias

28/06/2019

The various PCI indices are compiled from a universe of over 200,000 underlying portfolios supplied by over 90 discretionary investment managers who have elected to be Data Contributors. Conventional wisdom would suggest that it is highly probable that there is survivorship bias at the portfolio level. Why? Because private client investors with poorly performing portfolios are assumed to be more likely to close them down than investors with portfolios performing above expectation. So is conventional wisdom correct?

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