Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty - 19th Jul 18
Stock Market Technical Picture - 19th Jul 18
Gold Market Signal vs. Noise - 19th Jul 18
Don’t Get Too Bullish on Gold - 19th Jul 18
Bitcoin Price Rallies to Upper Channel – What Next? - 19th Jul 18
Trump Manchurian President Embarrasses Putin By Farcically Blowing his Russian Agent Cover - 19th Jul 18
The Fonzie–Ponzi Theory of Government Debt: An Update - 19th Jul 18
Will the Fed’s Interest Rate Tightening Trigger Another Financial Crisis? - 18th Jul 18
Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks - 18th Jul 18
Stock Market Longer-Term Charts Show Incredible Potential - 18th Jul 18
A Better Yield Curve for Predicting the Stock Market is Bullish - 18th Jul 18
U.S. Stock Market Cycles Update - 18th Jul 18
Cayton Bay Hoseasons Caravan Park Holiday Summer 2018 Review - 18th Jul 18
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18
US Stocks Set For Further Advances As Q2 Earnings Start - 15th Jul 18
Stock Market vs. Gold, Long-term Treasury Yields, 10yr-2yr Yield Curve 3 Amigo's Update - 15th Jul 18
China vs the US - The Road to War - 14th Jul 18
Uncle Sam’s Debt-Money System Is Immoral, Tantamount to Theft - 14th Jul 18
Staying in a Caravan - UK Summer Holidays 2018 - Cayton Bay Hoseasons Holiday Park - 14th Jul 18
Gold Stocks Summer Lows - 14th Jul 18
Trump US Trade War With China, Europe Consequences, Implications and Forecasts - 13th Jul 18
Gold Standard Requirements & Currency Crisis - 13th Jul 18
Focus on the Greenback, Will USD Fall Below Euro 1.6? - 13th Jul 18
Stock Market Outlook 2018 - Bullish or Bearish - 13th Jul 18
Rising Inflation is Not Bearish for Stocks - 13th Jul 18
Bitcoin Picture Less Than Pretty - 13th Jul 18
How International Observers Undervalue the Chinese Bond Market - 13th Jul 18
Stocks Trying to Break Higher Again, Will They? - 12th Jul 18
The Rise and Fall of Global Trade – Redux - 12th Jul 18
Corporate Earnings Q2 2018 Will Probably be Strong. What This Means for Stocks - 12th Jul 18
Is the Relative Strength in Gold Miners to Gold Price Significant? - 12th Jul 18
Live Cattle Commodity Trading Analysis - 12th Jul 18
Gold’s & Silver’s Reversals’ Reversal - 12th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Stocks & shares ISAs Deliver Weakest Performance Since 2008 Financial Crisis

Personal_Finance / ISA's Apr 04, 2016 - 12:40 PM GMT

By: MoneyFacts

Personal_Finance

· The average performance of a stocks & shares ISA has fallen by 2.7% during the 2015/16 tax year so far, the worst growth since the 2008 financial crisis.

· This compares with an average cash ISA rate of 1.44% over the same period.

· The average stocks & shares ISA has failed to deliver positive growth in seven of the 17 tax years since the introduction of ISAs in 1999.


As the 2015/16 tax year draws to a close, new research by Investment Life & Pensions Moneyfacts has revealed the extent to which stocks & shares ISA performance has suffered during what has been a testing period for stock markets.

As things currently stand, 2015/16 is on course to be the worst tax year for stocks & shares ISA performance since the 2008 financial crisis. The average stocks & shares ISA fund has fallen by 2.7% so far this tax year (see Table 1), the biggest fall since the 2008/2009 tax year when the average loss was 20.8%. By contrast, the average interest rate on cash ISAs (both fixed and variable rate) during the course of the 2015/16 tax year is 1.44%.

Highlighting the challenging environment that has faced investors in the current tax year is the fact that just 232 out of the 1,009 ISA funds surveyed (22%) have delivered growth during this period. In terms of Investment Association sectors, the standout ISA performers during the current tax year have been UK Smaller Companies (8.5%), European Smaller Companies (6.3%) and Japanese Smaller Companies (5.1%). At the other end of the spectrum, China/Greater China (-12.8%), Global Emerging Markets (-10.5%) and Asia Pacific Excluding Japan (-9.5%) suffered the heaviest losses.

While the 2015/16 tax year figures may be disappointing, there is still a strong case for investing in stocks & shares ISAs over the long term. This is demonstrated by some of the other findings from our latest ISA survey:

• The average stocks & shares ISA fund has grown by 175% in the 17 years since the introduction of ISAs. The best performing ISA fund over that period (Marlborough Special Situations) has posted growth of 1,833%.

• Only three funds out of 434 stocks & shares ISA funds that have been available since ISAs were first introduced have delivered a loss. All bar three funds have delivered double-digit growth.

Richard Eagling, Head of Pensions and Investments at Moneyfacts, said:

“The heightened market volatility and ongoing uncertainty facing the global economy has naturally had an adverse impact on the performance of most stocks & shares ISAs, with the vast majority failing to deliver positive growth this tax year. This has led to the unusual position whereby savers would have achieved a better return from a cash ISA in the 2015/16 tax year, even though these rates are at record lows. However, there is still a compelling argument for investing into a stocks & shares ISA, as demonstrated by the returns posted over the longer term.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules