The best and worst: Unit trust sector post crash
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SOME of the smaller markets of south-east Asia, including Hong Kong, were among the hardest hit in the world stock market crash that happened five years ago tomorrow.
The harder a market or individual share falls, the further it can bounce. This explains some of the spectacular gains achieved on money invested in Far Eastern trusts (excluding Japan) just after the equities crash.
Many of these markets have also performed well because of fast economic growth.
Nigel Legge, sales and marketing director of James Capel Unit Trust Management, says that as the Far East has become a more important sector, investors have felt obliged to increase their holdings in the region.
However, not all markets and individual shares hit hard in the crash, have bounced back.
There is little difference between the lists of best and worst performing sectors in the five years from just after the crash until now and the five years dating from the peak of the 1980s bull market. The Far East ranks third in the five years from 1 October 1987 with an average profit on unit trusts invested in this area of just under 18 per cent.
----------------------------------------------------------------- UNIT TRUST SECTORS POST-CRASH ----------------------------------------------------------------- The best pounds 1 Far East excl Japan 225.46 2 America 168.98 3 Europe 145.31 4 International Balanced 133.94 5 Int'l Fixed Interest 133.51 The worst 18 Japan 98.62 19 Convertibles 91.42 20 Commodity & Energy 86.17 21 UK Smaller Co's 81.36 22 Financial & Property 76.49 ----------------------------------------------------------------- Value of pounds 100 invested in an average performing trust within each sector between 2 November 1987 and 5 October 1992. Offer-to- bid, income reinvested. Source: Micropal -----------------------------------------------------------------
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments