Morningstar regularly analyses the returns achieved by active fund managers and compares them with benchmarks over several years. The longer the observation period, the smaller the proportion of managers who outperform their benchmark. Yet this is precisely what they aim to achieve – and what they charge management fees for.
However, there are also many highly skilled active asset managers. The challenge lies in identifying and comparing them. This is therefore not an argument against active management, but rather a reason to take a closer look when selecting managers and to consider lesser-known or highly specialised managers for certain investment mandates.
Portfolios managed through a Wealth Office represent total assets of more than CHF 5 billion. These assets are managed across various investment strategies by more than 100 different asset managers. This gives us a comprehensive overview of actual investment returns and the costs incurred.
For bond portfolios, 72% of our clients' portfolios outperformed their selected benchmark over an observation period of five to ten years. According to the Morningstar study, the corresponding figure for the broader market is only around 40%.
Among balanced portfolios, 51% of our portfolios outperformed their benchmark, compared with 27% in the study mentioned above. For equity portfolios, 25% of our clients' portfolios outperformed their benchmark, compared with 14% in the broader market. Here too, the systematic approach delivers a significant improvement.
Conclusion
Benchmarks help determine whether the right asset manager has been selected for a particular investment strategy. Good active asset managers can be identified. The key factors are a broad basis for comparison, high-quality data and a systematic selection process. Together, these provide the foundation for informed investment decisions and better results.
Benchmarking in Focus: Wealth Office Investment Committee
How can investment performance be compared effectively? At our latest Wealth Office Investment Committee meeting on 8 October 2026, we took an in-depth look at benchmarking.
Watch the recording to learn more about the importance of benchmarks when evaluating investment performance.
Compare Your Portfolio Performance
How has your wealth performed? Compare your portfolio's performance against relevant benchmarks and find out how your investments measure up against the broader market.
