Almost 25 of the 31 IMA sectors have produced negative returns in the first 11 months of 2002, with ...
Almost 25 of the 31 IMA sectors have produced negative returns in the first 11 months of 2002, with UK-based funds showing their worst 11-month period since 1990.
Analysis from Lipper, the fund performance statistic provider, shows that from 31 December 2001 to 29 November 2002, the average UK-based unit trust and Oeic was down 12.22%.
This compares to 1990, when there was an 11-month period in which the average fund fell by 17.26%. In that period, just 262, or 14% of UK unit trusts and Oeics out of a total of 1,804 managed positive performance. No single equity-invested IMA sector delivered positive growth and equity-invested funds fell by 19.11% on average.
The gloom was compounded by the fact that some 1,335 UK-based funds, or 74%, suffered double-digit falls. So far in 2002, some 240 funds have lost 25% of their value.
Even with recent rises, the technology and telecoms sector was the worst category for the year, down 42.01% on average, although from its peak in March 2000, the sector has dropped by just under 80%.
Latin America was the second worst-performing sector in 2002 with a 28.91% fall as continued economic turmoil in Argentina dominated newsflow. The IFC global Argentina index has fallen 54.27% this year.
Both North American equity sectors also lost more than a quarter of their value. North American Smaller Companies fell 28.06% while the North American sector fell 25.65%. The S&P 500 fell 17.24% in 2002.
The weak performance of equity markets has seen bond markets rise to the top of the performance tables, although the best performing fund to the end of November was the Merrill Lynch Gold & General fund, which to that point had posted a 50.9% gain.
Other specialist funds have done well, with Old Mutual Thailand, Schroder Seoul, Baring Korea and JP Morgan Fleming Natural Resources all in the top six.
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