One Percent of Institutional Investors Outperform After costs: State Street

State Street Corporation (NYSE:STT) Center for Applied Research released a new report recently with a shocking statistic. Just 1 percent of institutional investors do better after costs are deducted. The State Street analysis concentrated on investment decisions made by university endowments, global pension funds, and sovereign wealth funds.

The stat came from a paper entitled The Quest For Performance. The paper studied the effect of changes in world finances brought about by the international financial crisis of 2008 and policy shifts made after that event....