TY - JOUR T1 - Issues with Asset Class-Based Portfolio Construction: <em>An Analysis of Mutual Fund Characteristics</em> JF - The Journal of Wealth Management SP - 37 LP - 52 DO - 10.3905/jwm.2015.18.3.037 VL - 18 IS - 3 AU - James Chong AU - William P. Jennings AU - G. Michael Phillips Y1 - 2015/10/31 UR - https://pm-research.com/content/18/3/37.abstract N2 - 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 ER -