Page 41 - DIY Investor Magazine | Issue 32

Launch Rank
1909 21 1888 22 1929 23
1927 24 1887 25
1889 26 1873 27 1891 28 1923 29 1873 30 1889 31 1929 32 1907 33 1898 34 1927 35
– –
Company
Witan
Alliance Trust
JPMorgan European Growth
Brunner
Henderson Smaller
Merchants
Scottish American
City of London Murray Income
Dunedin Income Growth
Edinburgh Shires Income
Baillie Gifford China
Aberdeen Diversified I&G
JPMorgan Japanese
Average
Sector
Global Global Europe
Global
UK Smaller Companies
UK Equity Income
Global Equity Income
UK Equity Income
UK Equity Income
UK Equity Income
UK Equity Income
UK Equity Income
China / Greater China
Flexible Investment
Japan
–
Last 10 years
13.50% 13.20% 12.20%
13.60% 17.60%
10.40% 12.90% 8.20% 8.00% 9.10% 7.40% 9.40% 7.90% 3.50% 14.10% 11.60%
Last 20 years
8.40% 8.80% 8.20%
8.60% 11.80%
7.60% 9.10% 7.50% 7.40% 6.80% 6.90% 5.70% 8.10% 3.60% 7.10% 9.30%
Last 30 years
9.50% 9.40% 9.40%
9.40% 9.10%
8.90% 8.80% 8.80% 8.70% 8.30% 7.60% 7.20% 5.90% 5.70% 4.90% 10.00%
As with all such tables, we need to be aware of survivorship basis. There would have been a lot more trusts of this vintage that existed back in January 1992 that are no longer around.
And it will tend to be the best-performing trusts, relative to their chosen benchmarks, that are still with us today.
LONG-TERM RETURNS TEND TO BUNCH UP
It’s interesting to see how the returns get more closely grouped over time though. Over 10 years the worst performer is Aberdeen Diversified Income & Growth at 3.5% pa and the best (no surprise) is Scottish Mortgage at an incredible 24.6%.
Over 30 years, the worst is 4.9% pa and the best (Scottish Mortgage again) is 14.7%. So none of these funds has managed to return in excess of 15% for the last three decades.
Half of these funds returned between 10% and 15% annualised over the last 30 years, 13 returned between 7.5% and 10%
and 4 produced between 5% and 7.5%. That’s worth bearing in mind when setting your own expectations for very long-term returns.
‘THE BEST (NO SURPRISE) IS SCOTTISH MORTGAGE AT AN INCREDIBLE 24.6%’
HOW DID THE WIDER MARKET DO?
To add some context, stock market returns were excellent in both the 1990s and 2010s but pretty dreadful in the 2000s; UK inflation averaged 3% over this period and was between 2% and 4% nearly the whole time
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DIY Investor Magazine · Feb 2022