Investing
The sectors which returned over 200% in the last decade
It has been a monumental ten years for equity and bond markets, with the euphoria of the first half matched by the despair seen on the faces of traders in the second half, after one of the worst financial meltdowns ever seen.
With steep rises in stocks from 2002 until 2007, most investors were wholly unprepared for the sudden and shocking falls we would witness in 2008.
Today the financial system remains constricted around the world, as banks rush to unwind over-stretched balance sheets, and economies contract in the face of a potential slowdown in China and the US.
Investors, battered for the last four years by equity markets, have rushed into bonds in ever greater numbers in the ongoing search for returns, while everyone has got used to the idea you cannot get 5% on cash anymore.
But where, if you had a crystal ball, should you have put your money back in 2002, to give you the highest possible return?
Below, according to data from Morningstar, is a run down of the top performing IMA sectors over what has been a turbulent decade.
Only three sectors managed to deliver you over 200% if you had invested in the average fund, while a further eight sectors would have more than doubled your investment.
The data covers the period from July 2002 to July 2012, showing the percentage gains for an investor who put £100 into the average fund. The % change (gains) includes any dividends the investor would have been paid, while the final column shows the number of funds investors had to choose from if they invested ten years ago.
UK Registered Investment Funds |
||
---|---|---|
Sectors | % Chg | No. of Funds |
(IMA) Global Emerging Markets | 244.16 | 21 |
(IMA) China/Greater China | 241.00 | 9 |
(IMA) Specialist | 224.10 | 47 |
(IMA) Asia Pacific Excl Japan | 191.47 | 40 |
(IMA) UK Smaller Cos | 187.06 | 34 |
(IMA) European Smaller Cos | 183.88 | 11 |
(IMA) Asia Pacific Incl Japan | 133.97 | 6 |
(IMA) Nth American Smaller Cos | 130.57 | 5 |
(IMA) Technology and Telecommunications | 106.02 | 9 |
(IMA) UK All Companies | 103.67 | 175 |
(IMA) UK Equity Income | 102.67 | 55 |
(IMA) UK Index Linked Gilts | 97.68 | 6 |
(IMA) Flexible Investment | 97.20 | 38 |
(IMA) Mixed Investment 40-85% Shares | 91.30 | 51 |
(IMA) UK Equity and Bond Income | 89.60 | 16 |
(IMA) Global Bond | 88.66 | 36 |
(IMA) Global | 87.81 | 106 |
(IMA) Europe Including UK | 87.56 | 15 |
(IMA) Europe Excluding UK | 87.45 | 63 |
(IMA) £ High Yield | 86.43 | 12 |
(IMA) Absolute Return | 76.61 | 2 |
(IMA) Global Equity Income | 71.89 | 3 |
(IMA) Mixed Investment 20-60% Shares | 69.51 | 25 |
(IMA) £ Strategic Bond | 65.26 | 23 |
(IMA) UK Gilts | 63.50 | 16 |
(IMA) North America | 63.36 | 43 |
(IMA) Mixed Investment 0-35% Shares | 59.33 | 4 |
(IMA) £ Corporate Bond | 50.85 | 44 |
(IMA) Japanese Smaller Cos | 50.49 | 6 |
(IMA) Property | 43.20 | 4 |
(IMA) Protected | 40.59 | 1 |
(IMA) Money Market | 25.33 | 8 |
(IMA) Short Term Money Market | 24.46 | 8 |
(IMA) Japan | 19.00 |
32 |