Johannesburg - With the myriad of data available to investors when selecting which fund best suits their investment profile, it is difficult to know which data point to use, according to Brian du Plessis, director of Rezco Asset Management.
In his view, rolling returns, however, give a clearer track record of how a fund has performed and potentially how it will perform in the future.
Du Plessis says rolling returns measure the performance of a fund as far back as the data is available in order to better demonstrate a fund’s good and bad performance periods.
“Rolling returns can help investors look past current performance data and see how it has performed over a far longer period of time. If one looks only at a one-year track record, also known as trailing returns, this simply offers a snapshot at a moment in time, while rolling returns also account for various overlapping periods, similar to slowing down a movie to study it frame by frame," he explained.