What is QAIB?DALBAR's 2013 Quantitative Analysis of Investor Behavior (QAIB) is the nineteenth annual edition of a report that examines the returns that investors actually realize and the behaviors that produce those returns.
Since 1994, DALBAR's QAIB has been measuring the effects of investor decisions to buy, sell and switch into and out of mutual funds over both short- and long-term time frames. The results consistently show that the average investor earns less - in many cases, much less - than mutual fund performance reports would suggest.
The goal of QAIB is to continue to improve the performance of independent investors on the one hand and of professional financial advisors on the other hand by incorporating the factors that influence behavior that determines the outcome of investment or savings strategies. QAIB offers guidance on how and where investor behaviors can be improved.
QAIB 2013 examines real investor returns in equity, fixed income and asset allocation funds. The analysis covers the 20-year period ending December 31, 2012, encompassing both the drop at the turn of the millennium, the crash of 2008, plus the recovery periods of 2009, 2010 and 2012. This year's report discusses the advantages of asset allocation and how asset allacator should be evaluated for effectiveness.
The report explains how investors and advisors adapt to changing market conditions and produce investor returns using investor behaviors, the psychological factors that drive them and the knowledge of how investment classes have acted in the past.
What does the Report include?
- The Disease of Investor Underperformance - Since 2005, QAIB has introduced a third type of investor into the analysis; those invested in asset allocation funds. Top performing asset allocation funds may provide a solution to this underperformance.
- The Advantage of a High Quality Allocator - Choosing a top allocator makes a significant difference in the investment results one will achieve.
- Investor Returns - The bottom line: how did investor returns compare to the broad market indices?
- Risk Aversion and Inflation - A look at how extreme risk aversion can erode wealth.
- QAIB Through the Years - This section compares the average equity investor returns and buy-and-hold returns since 1998.
- Systematic Investing - This section shows the results for the average investor in equity, fixed income or asset allocation mutual funds compared with the hypothetical process of systematic investing.
What is the Cost of the Report?
How do I order QAIBYou can order the QAIB report by calling 617-723-6400 or at www.QAIB.com.