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Crunching the biggest trends down into figures
175.02%
Volatility:
A double-edged sword
Someone who invested in the MSCI World index
at its pre-financial crisis peak would have seen a
maximum drawdown of 37.9% and would had to
have waited 2 years and 5 months to get their
money back
Someone who invested in the IA Targeted
Absolute Return sector at its pre-financial crisis
peak would have seen a maximum drawdown of
7.89% and would had to have waited 1 year and 3
months to get their money back
49.58%
But...
29.15%
Return of IA
Targeted Absolute
Return sector
since pre-financial
crisis peak
Return of MSCI
World index since
pre-financial
crisis peak
of the FTSE All
Share’s 10 best
days this century
came during the
financial crisis
FE TRUSTNET
4 of the 5 best performers in the IA
universe over 10 years are in the bottom
quartile for suppressing volatility
– maximum
drawdown of
Marlborough Special
Situations, the best-
performing fund in
the IA universe over
20 years. It has made
1,895.93% over
this time
MFM Junior Gold, the fund with the worst score
for suppressing volatility in the IA universe over
10 years, also made the worst return, at -61.43%
Investors in the IA
Japan sector at its
peak in December 1989
would still have been in
negative territory more
than 24 years later
11 – the number
of sectors in the IA
universe that have made
a negative return for
investors over a period of
at least 10 years
Sources: FE Analytics, JP Morgan
trustnet.com