These statistics are aimed at providing intermediaries with more flexible information than just the ...
These statistics are aimed at providing intermediaries with more flexible information than just the total return and volatility scores of a fund in a specific sector.
For bond funds, as well as equity income portfolios, we include income earned over 12 months, based on a £1,000 initial investment.
IFAs can use these figures to compare the levels of income earned in a particular fund, over and above the total return figures, which are displayed before charges.
This is to show that while a fund may have the highest total return, it may have a low level of income offered. For example, the Old Mutual Corporate Bond fund achieved a total return of 11.87%, before charges, over the 12 months to the end of June 2003, the second highest return in the sector.
However, with income of £37.34 over that period, funds with slightly lower total returns but higher income may have proved a better choice for some investors.
The Lincoln Corporate Bond fund gained 10.85%, bid to bid, but also provided a high level of income at £51.03.
Consistency is the main thrust of the statistics and to judge this, intermediaries can look at the number of negative months the fund experienced over the 12 month period, including the month it achieved its largest fall.
Funds with high returns but a large number of negative months show the manager achieved the gains sporadically, possibly through large gains made on a few of the holdings rather than the balance of the portfolio itself.
By looking at the difference between the largest monthly gain and the largest monthly fall, advisers can more easily see the volatility, or lack of volatility produced by the manager.
The inclusion of the date of the largest fall, should enable advisers to see if the manager's worst month was also a correspondingly bad month for the markets as a whole or whether there was something more fund specific that resulted in such a drop. The last column in our statistics helps to project forward, showing that if the fund achieved negative returns over the 12 month period, how much it will have to gain over the next 12 month period in order to return investors' original capital.
Corresponding graph data is aimed at aiding the adviser to compare the fund's returns with what was happening in the overall markets. In addition, information supplied by Lipper shows where the average fund was positioned.
For bonds this means the denomination and the duration, while for equities it will show sectors and geographical breakdowns.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till