Are the Credit Suisse/Tremont Sector Invest Indices affected by survivorship bias?
Most indices are affected by some form of survivorship bias. In order to minimize this effect, the Sector Invest Indices do not remove funds in the process of liquidation, and therefore capture most of the potential negative performance before a fund ceases to operate. If a fund enters liquidation, its performance remains in the Sector Invest Indices until it fully liquidates, at which time it is removed because it no longer meets investability requirements. Please see the Methodology section of this website or the Credit Suisse/Tremont Sector Invest Indices Rules document for additional information.
