- 15 NovThe Alpha Lifecycle
- 16 OctVector 2019 Q3 Review
- 10 SepA new prospectus
- 14 AugMarket Review: July
- 10 JulVector 2019 Semi-annual Review
- 14 JunAre factor premia disappearing?
- 21 MayHow persistent is regional outperformance?
- 12 AprMarket recovery: sense or sentiment?
- 12 MarMarkets solidify recovery
- 12 FebStock Markets Rebound
- 31 DecVector 2018 Annual Review
- 14 Dec2019 (outrageous) predictions!
- 20 AugTemperatures and stock markets heat up
- 18 JulVector 2018 Semi-annual Review
- 14 JunDo exporters suffer during trade wars?
- 15 MayStrong earnings put markets on the road to recovery
- 17 AprQ1 Overview
- 13 MarStock Markets: Episode VI: The return of volatility
- 02 MarVector wins Morningstar Germany and Belgium Awards!
- 22 FebVector Flexible wins De Tijd/L'Echo Awards for the third year in a row!
- 16 FebNavigator wins Morningstar France Award!
Vector 2015 Annual review
31 Dec 2015
2015 has turned out to be quite a rollercoaster for equity investors. During the first quarter stock markets around the globe reached new highs as Mario Draghi announced a Quantitative Easing program to the tune of 1.5 trillion Euro. But the ever-increasing possibility of a Grexit and - in later stages - growing concerns about the state of the Chinese economy, completely reversed the bullish sentiment during the summer. October and November saw market confidence partially restored, as concerns over China briefly dissipated. In the end, even a bearish December could not stop the World Index (MSCI ACWI NR EUR) from ending the year with a decent profit of 8.76%.
Overall, our funds performed quite well in 2015. Vector Flexible was up 8.22% over the year, boasting a reward-to-volatility ratio of 0.79 - which is 58% better than the MSCI ACWI’s score on the metric. As frosting on the cake, Flexible managed to outperform its Morningstar Category with 6.14%, beating 89% of its peers. Given the recent volatile climate on the stock markets we decided, mid-December, to increase the futures-coverage of Vector Flexible to 40%. As a direct consequence the fund is holding up quite a bit better than most global indices during the difficult first weeks of January.
Vector Navigator on the other hand recorded a return of 12.03% in 2015, beating the MSCI World All Countries (NR in Euro) with a healthy 3.3%. When comparing to our peers we see that Navigator ended the year on a 3.2% outperformance, which implies that the fund managed to beat 81% of its competitors during the year. Over the long term, this outperformance has been very consistent, as we now have beaten our Morningstar category for the 7th year in a row, and for the 14th year in the funds’ 15 years of history.
Not surprisingly, this outperformance also holds when we compare ourselves to regional rather than global indices or competing funds. The graphs below show that – since the implementation of a refined version of our methodology 4 years ago – Navigator has beaten every respectable broad regional index in play. This includes the North-American equity markets, which massively outperformed their counterparts in Europe and elsewhere.