InvestorBee launches a quarterly objective heath-check for retail investors, including a buyer's guide to investment funds

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Funds from L&G and Aberdeen feature prominently amongst the top funds in the Q2 2012 buyer’s guide; whilst higher risk portfolios produced the most rewarding returns, despite the economic turbulence.

While investing there is no absolute certainty, but we offer the comfort of relative certainty – how are you doing compared to everyone else? This is a big step forward.

InvestorBee (http://www.investorbee.com) just announced the launch of the first instalment of their quarterly ‘fair return benchmarks’ factsheet. Key highlights from the launch edition below:

Q2 2012 top funds:

  •     Interestingly, not all the top performing funds are household names. Amongst the ones well known, L&G funds have performed rather well. L&G is also the only fund manager to have top funds in two different risk groups - in both high risk and medium risk categories.
  •     Aberdeen Asset Manager’s Managed Distribution Fund dominated the Medium-Low Risk group topping three out of four categories including best net returns*, most consistent performance* and best low fee fund*.

Q2 2012 benchmark performance:

  •     The fair returns from a high risk portfolio have proved the most rewarding over a 3-year period, where an initial investment of £100 has yielded a total of £136, despite some significant losses in the last 6 months.
  •     Consumers who have taken even a small amount of risk have been relatively well rewarded, compared to those who held cash. Medium-low risk portfolios returned £123 on the same £100 investment made at the start of the three year period, versus low-risk (primarily cash) portfolios, which ended with just £102

InvestorBee’s ‘Fair Returns Benchmark’ factsheets give British consumers the opportunity to objectively health-check their investments for the first time. The factsheet, through its new benchmarks, gives consumers clarity on what a ’fair return‘has been for their money invested. The benchmarks are the first truly independent yardstick for investments at a portfolio-level. InvestorBee continually monitors the performance of over 1.4 million real UK investors to objectively identify five different levels of investment risk i.e. low risk, medium-low risk, medium risk, medium high risk and high risk. Within each risk level, the full and diverse range of returns achieved (after fees) is analysed to allow consumers to track the fair (or average) return.

The factsheet also includes a buyer’s guide to retail funds. Funds are ranked on the basis of the net value they deliver after fees. There is a fashion at the moment for choosing a fund simply by looking for the lowest fee. However, InvestorBee’s analysis shows that three out of four of the best performing funds actually charged a relatively high fee, illustrating that a low fee does not automatically mean a better investment choice. People should be focused on getting good net value at the right level of risk from an investment, not just a cheap option.

InvestorBee’s Managing Director Graham Mannion discusses some of the results: “This data gives people vital insight when they’re thinking about their investment decisions. For example, a high risk investor can see that the ‘average high risk’ investor from the InvestorBee database achieved a 36% return, so they should be pleased if they have managed the same or better return over the last 3 years. But, they should not be disheartened if their portfolio lost as much 5% of its value in the 3 months up to July – because that was fair value, at that risk level, in that period. Without this context, people could be forgiven for taking rash decisions. While investing there is no absolute certainty, but we offer the comfort of relative certainty – how are you doing compared to everyone else? This is a big step forward.”

The ‘Fair Return Benchmarks’ factsheets will be published quarterly. Click here to download a copy of the Q2 2012 update. Watch out for the next one due early November 2012.

*For details on how the funds are ranked, access the Q2 2012 InvestorBee Fair Return Benchmark sheet at https://www.investorbee.com/media/63364/q2_2012_consumersonly_fairreturnbenchmarksv1_1.pdf.

-ENDS-

About InvestorBee:

InvestorBee, powered by DCisions and launched in December 2011, is a website that helps consumers make informed, fact-based decisions about their savings and investments. It analyses data from more than 1.4 million UK investors, over 30,000 financial products and over 1,000 sources of professional advice to track the results real investors are achieving. For more information on the site, visit http://www.investorbee.com.

DCisions harnesses enterprise data from leading financial institutions, monitoring the risk and return in more than 1.4 million real portfolios month-by-month, building on 5 years of history. DCisions is the leading provider of insight into consumer investing and drive the FTSE DCisions Index Series. The data and insight specialist is the recipient of the 2011 Innovation and 2009 Technology Provider Awards from European Pensions. For more information on DCisions, visit http://www.dcisions.com.

For further information please contact:

Kritika Ashok: 020 7297 2508, kritika.ashok@dcisions.com.

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Kritika Ashok
DCisions Limited
020 7297 2367 2508
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