The Factsheet Tricks, 1 of 10
The lucky start date
A return quoted "since" a date that happens to be a low point.
What it is
Every return is measured from somewhere. Start the clock at the bottom of a fall and almost anything looks good. A figure quoted "since" a particular month tells you about that month as much as about the investment.
Why it works
- Rules in the US and EU now require standard periods, complete 12-month periods and yearly figures, because selective presentation was a known problem.E22
Illustration, not a real fund
Grey: the full record, Jan 2015 to Dec 2024. Teal: the period “since” July 2022, which starts just after the low (red dot).
6.91% a year since July 2022
Measured from just after the bottom of its biggest fall. Over the full 10 years it grew 3.20% a year, and its worst 12 months were -19.61%.
Synthetic sample fund. Both figures computed by the openfactsheet library from the same monthly returns.
How to spot it
- Look for the word "since" and ask why that date was chosen.
- Ask for the full history and every complete calendar year.
- Ask what the worst 12 months were.
What OpenFactsheet does
Uses the full history you supply, every complete calendar year and every rolling 12-month window. Nobody picks the start date, including us.
Sources
- E22 U.S. SEC (2020). Press release 2020-334, Investment Adviser Marketing Rule. U.S. SEC (2021). Investment Adviser Marketing, final rule, 86 FR 13024. ESMA (2021). Guidelines on marketing communications under the Regulation on cross-border distribution of funds, ESMA34-45-1272.
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