Are the performance charts for the Guru Screens realistic?

The performance charts are based on an equal weighted portfolio, with a maximum of 25 qualifying companies for each screen (in some cases, it may be far fewer companies for screens with very stringent criteria).

The Guru Screen portfolios are rebalanced quarterly, at the end of March, June, September and December. In most cases tracking of the UK portfolios began on December 15th 2011. At the moment, we only track actual performance rather than using back-tested results.

It's also important to note that we are tracking the aggregate performance of a basket of stocks. The individual performance of a given stock in the list that we're tracking can - and almost certain will - vary widely from this average.

In general, these screens are provided as a research & education tool only. They are NOT investment recommendations, only examples of the companies you would find when applying a specific investment strategy. Please also remember that past performance is not necessarily a guide to future performance.

Do you factor in frictional costs or dividends?

No, please note that the impact of issues such as spreads, commissions, and dividends are not factored into the performance charts or annualised returns.

The exercise would become much more complicated if we tried to simulate actual market conditions on a given rebalancing date across all the strategies. While this means that the reported performance may not be entirely achievable in a live portfolio, this allows an easy comparison of different investment styles in varying market conditions. We are also comparing the performance versus the index, which doesn't factor in frictional costs either.