For hedge funds, it might be the performance of funds of funds that own a range of hedge funds.
Critics decry the hefty fees that they say eat into the performance of funds of funds.
"I am also concerned about mutual fund governance and the performance of fund directors, fund distribution practices and other matters".
Some researchers argue that yielding to politically popular views harm the performance of funds' portfolios.
The performance of funds which did well in the bubble era is likely to be unimpressive in tighter times.
Another study††, examining the performance of funds-of-funds from 1995 to 2004, found that their performance depended rather little on managerial skill, except during the dotcom bubble.
The so-so performance of funds investing primarily in long-term government bonds, which rose 1.2 percent, offset strength in high-yield bond funds, which gained 4.4 percent.
Simulation studies show that the adequacy of the pioneer generation fund depends on healthcare cost inflation and market performance of funds.
Mutual fund companies manage multiple funds, raising the possibility that manager pay depends not only on revenue and performance of funds she is responsible for, but also on revenue and performance generated by other funds in the same fund family.
"Rather than market their funds based on allocation strategies that will help investors meet their long-term goals, we get fund marketing that is based on recent performance of funds," Mr. Phillips said.
While the fund industry is generally becoming more sensitive to taxes, in many cases creating new funds that trade less often, thereby recognizing fewer gains, the before- and after-tax performance of funds can vary widely.
