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Winners and Losers 2019

2019’s Winners and Losers

If ever there was a year to dispel the predictability of asset class returns, 2019 has to be it! Not only have we had unbelievable returns right across the board (with six out of the eight asset classes you invest in delivering double digit returns), the previous year’s winning fund (Global Short Dated Bonds) became this year’s laggard; whilst the losing fund (UK Smaller Companies) was 2019’s top performer with a fabulous return of over 30%!! The table below shows the kaleidoscope of returns over each of the past 5 years…

Randomness of Results - 2019

If we then just take a second and transport ourselves back to January 2019 and remember how most of us were feeling. You might recall that there wasn’t much to be optimistic about… a stalling Brexit process, a failing PM (Teresa May – remember her??), a temporary shutdown of the US government over a row of who was going to fund Donald Trump’s US-Mexico border wall… I could go on but suffice to say I was using a lot of evidence based graphs and a good deal of soothing language!!

But guess what none of the worries came to pass and although it is inevitable that at some future point we will hit that ‘bump in the road’ investors who have remained patient and committed to global diversification have been well rewarded with excellent returns of 1, 3, 5 and 10 years.

1, 3, 5 & 10 year returns - 2019(Source: Dimensional Fund Advisors/Vanguard)
Past performance is shown net of Dimensional  fees/Vanguard funds are chosen gross and are per annum. Past performance does not necessarily indicate future performance. The investment return and principal value will fluctuate so that an investment’s shares/assets, when redeemed, may be worth more or less than their original cost.