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Music Audio Studios. Podcasts, Radio News. What would you say if I told you that most investors underperform not only the benchmarks, but their own investments?

That's the conclusion of an annual study by Morningstar titled, Mind the Gap. It examines the differences between returns generated by investment funds and the actual

returns investors experience.

The difference between the two, it's a substantial performance

gap driven, in large part, by investor behavior. I have the perfect person to discuss this

with. Jeffrey Patak is the managing director at Morningstar. Previously, he was the chief

ratings officer there. He joined Morningstar

way back in 2002. So, Jeffrey, let's start with the basics. What is the investor return gap?

And how large is it? Yeah, so first off, thanks so much for having me. I'm a big fan of the podcast.

So the investor return gap is the difference between our estimate of the average return of a funder, a group of funds,

and that funds, it's total return. It's stated return. What's the difference between the two of those

things? The former takes into account the timing and magnitude of cash flows that have come and gone

...