MAB-Quarterly-Review-Q2-2025-Cautious - Flipbook - Page 15
The chart shows the annualised returns for every period from one year through to ten years. For example,
the 昀椀rst one-year rolling period is 01/11/2004 to 01/11/2005, and the second is 01/12/2004 to 01/12/2005.
For the ten-year rolling periods, the 昀椀rst will be 01/11/2004 to 01/11/2014. The key learning point is the
dispersion in the early years is signi昀椀cant. Looking at one year periods, the dispersion is large, ranging from
almost +42% to -34%. This highlights the pitfalls of investing over short-term periods, where returns are
highly volatile.
For example, the worst one-year period was from end of October 2007 to end of October 2008, while the
best one-year period was from end of April 2008 to end of April 2009. The best year actually started during
the worst one-year period. The key though is the longer you invest for, the narrower the dispersions become.
Look forward ten years and the gap between the top and bottom is small, which leads us to the conclusion
that it does not matter when you start investing, the key is to start and then stay invested. The chart below
shows all of the rolling ten year periods and the average across all of these is just under +8% (after charges).
Source: YOU Asset Management, Financial Express Analytics, data from 01/11/2004 to 31/05/2024.
The study shows that the longer you remain invested,
the closer your return is to the long run average. It is
also important to ensure that you are appropriately
invested in a global diversi昀椀ed, multi-asset investment
strategy.
We recently passed the 20-year anniversary of our
models. This reminds us of the Chinese proverb that
we believe encapsulates this particular investment
insight:
“The best time to plant a tree was 20 years ago. The
second best time is now.”
We are focused on providing the best possible
outcomes for our clients and ensuring that the
investment that is given to us now, has a similar
experience to one that was given to our stewardship
20 years ago.
If you are currently invested, then stay invested. If
you are not invested, then start now, and begin your
journey to securing your best 昀椀nancial life.
15 %
The high-end estimate for
canned-food price increases
in the US due to the new 50%
duty on imported steel. That is
according to the Consumer Brands
Association, a trade group whose
members include Campbell’s
and Del Monte. The US no longer
makes a lot of the tin-coated
ultrathin sheet steel required
for canning food.
Source: Wall Street Journal, 09/06/2025
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