Fiduciary News

How do we stop the BHB myth that claims asset allocation accounts for 93% of investment performance? It’s been a while since major financial service providers have misquoted the infamous Brinson-Hood-Beebower research papers from the late 1980s/early 1990s. We still, however, see individual practitioners and even the some journalists repeating the false claim that “asset allocation is responsible for 93% of a portfolio’s investment performance.” Why has this misquote persisted and how can the subsequent misapplication of asset allocation damage long-term investors’ returns? What do you think should be done about?
[bpfb_link url=’http://www.benefitspro.com/2015/06/11/will-exposing-the-bhb-myth-destroy-asset-allocatio’ title=’Will exposing the BHB myth destroy asset allocation? | BenefitsPro’ image=’http://media.benefitspro.com/benefitspro/article/2015/06/11/0611mythicalbldgap.jpg’]Roger Ibbotson exposed the myth of BHB regarding asset allocation. Why hasn’t anyone listened?[/bpfb_link]