[GRTV]Selecting the right fund manager

He talks to GRTV about why it’s not a good idea to choose a fund manager based on past performance.

Taking the analogy of a 100 metre race between Usain Bolt, himself and GRTV’s Philip Macalister, it’s clear Usain Bolt would win, says Schiltknecht. It’s all about natural ability and skill and there’s no need to run the race 50 times to know who will win.

“It’s clear that luck doesn't play a role. When it comes to investments, both skill and luck are involved with outcomes, and it's the same for fund managers.”

Another analogy would be to throw darts at the NZX50 to select stocks - a terrible approach but purely by chance, the results after one year, may have outperformed the NZX, and even all the other fund managers.