PT - JOURNAL ARTICLE AU - James Chong AU - William P. Jennings AU - G. Michael Phillips TI - Issues with Asset Class-Based Portfolio Construction: <em>An Analysis of Mutual Fund Characteristics</em> AID - 10.3905/jwm.2015.18.3.037 DP - 2015 Oct 31 TA - The Journal of Wealth Management PG - 37--52 VI - 18 IP - 3 4099 - https://pm-research.com/content/18/3/37.short 4100 - https://pm-research.com/content/18/3/37.full AB - This article explores the degree of homogeneity of investment performance of mutual funds within and among asset classes. The analysis considers the assets class category and performance of more than 3,500 mutual funds for the period from 2006 through 2014. Although investment textbooks and professionals often emphasize that asset selection explains more than 90% of performance, as is detailed herein, the range of investment outcomes within a single asset class can vary considerably more than conventional wisdom would suggest, since the funds within the various asset classes are not homogenous. These fi ndings encourage increased attention to refi ning the process of mutual fund selection.TOPICS: Mutual funds/passive investing/indexing, portfolio construction, performance measurement