Comparing performance of investment classes in H1 2020
We analysed the performance of mainstream investment classes in H1 2020.
Following the Covid-19 outbreak and the current economic environment, RateSetter announced on 4 May a temporary reduction in interest for the remainder of the year. During this time, investors will receive only 50% of their interest with the other 50% going to the Provision Fund, for the protection of all investors. Also, since the outbreak, the time it is taking investors to release their investments is currently longer than normal. Further information is available here.
In a recent blog, we analysed the performance of mainstream investment classes since the start of 2020 up to mid-April. We have updated that analysis, looking at how a £10k investment has performed in each of the assets over the first half of 2020.
Our research covering the first half of the year shows that gold, government bonds, RateSetter and savings protected capital and kept money earning. The most stable investments were savings, government bonds and RateSetter.
The highest returns were registered by Bitcoin, although this was also the most volatile of the investments analysed – after entering negative territory in March and April, it rose in value through to the summer months. Equities and gold have also shown relatively high levels of volatility, but while gold has delivered positive returns across the period, the FTSE100 and Emerging Markets have remained in negative territory since early in the year, although they have recovered some value since late March.
Commenting on the analysis, RateSetter CEO Rhydian Lewis said: “Some investment classes saw high levels of volatility following the economic shock in March. Our priority at RateSetter has been to maintain stability, preserve investors’ capital and keep money earning through this downturn”.
Please note that all the investments analysed have different risk and return characteristics.
Data sources (accessed on 1st July 2020):
- FTSE 100: iShares Core FTSE 100 UCITS ETF
- Savings accounts: MSE easy access accounts top rates
- Corporate bonds: iShares Core £ Corp Bond UCITS ETF
- Bitcoin: Yahoo Finance
- Gold: Gold Spot British Pound
- Government bonds: UK 10 YR Gilt Futures
- Emerging Market index: iShares MSCI Emerging Markets UCITS Dist
- RateSetter website
Capital at risk. No FSCS protection. Past performance is not an indicator of future results.