An investor’s 2011: The Year in Numbers

2011 has been a rollercoaster year for private investors, and for the investment industry. But what exactly happened? We take a quick look back at the big financial events of the year through that most unbiased of indicators: the cold, hard number.


4.8% inflation as of November 2011.
2.8% 2011 inflation forecast in November 2010. Inflation in 2011 is the highest it has been since the Bank of England was handed responsibility for keeping it around the 2% mark. it is below Zimbabwe’s 11,200,000% inflation in 2008.

Inflation is a useful measure against which to compare investment returns.

Markets
+17.25% Gold, +0.91% Dow Jones, -5.83% FTSE, -14.26% DAX, -23.24% Shanghai Composite

The markets have confounded predictions, with the FTSE going below 5000 and China seeing a big fall. Gold was up over the year, but has gone down 6% in the last few weeks of 2011 with fears of deflation for 2012.

Investments
+15.62% Best Performing Sector.
UK Index Linked Gilts
Best fund in sector:
Schroder Institutional Long-Dated Sterling Bond
+28.09%

-21.41%
Worst Performing Sector
China/Greater China
Worst Fund in sector:
Jupiter China
-30.75%

7% The number of funds beating the RPI in 2011.
An investor picking a random fund would have a 7% chance of not losing money in real terms in 2011.

The impact of cost on performance is much higher when there is low growth; an average, low cost funds outperformed funds with higher costs in 2011, returning -0.8% overall against -6.3% for higher cost funds.

Retail Investment Industry
£21,854,477 cash collected in fines by the FSA for failings in advice and mortgage broking. The FSA collected over £66 million in ffines in 2011 overall, down from £89 million in 2010.

-23% the reduction in the amount invested in 2011, compared to 2010. This is mainly due to the 64% drop from Q2 2011 to Q3 2011, following the beginning of the Euro crisis, the England riots, the 2011 Budget (and the death of Amy Winehouse.)

£373,768,693,615 the amount of money invested in retail funds in the UK.
Despite the reduction in the amount invested and the poor performance of investments in general, this is up by £7,586 million compared to 2010. This investment industry is still in good health.

2011-in-numbers

Infographic by rplan.

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