If you've ever looked into investment products, you'll probably have seen a phrase that goes something like "past performance is not a reliable indicator of future performance." Sound advice, and all too true 👍
With this in mind, it's ironic that for those of us who aren’t experts in wealth management (so basically, that's pretty much everyone), historic fund performance is one of the few metrics we can use to make our decision.
What matters most to us is how our investments will perform in the future. And even though we logically understand that what happened last year has no bearing on the results we can expect this time around, it's only natural that we should want to look back at how our investments performed in the past 👀
Let's take a look at the historic performance of our investment funds (information correct as of 8th March 2021):
Slow & Steady Fund
Composition
The Slow & Steady Fund is a diversified portfolio composed of approximately 20% shares and 80% bonds. Money is invested across countries and industries to give a broad representation of the overall market.
Provider
The name of the underlying fund is the 'Vanguard LifeStrategy 20% Equity Fund', and it is provided by Vanguard Investments UK Limited.
Risk level
3 out of 7 from industry standard.
Past Performance
Avg. annual return: 4.96% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard LifeStrategy 20% Equity
Key Investor Info: Vanguard LifeStrategy 20% Equity
Balanced Bundle Fund
Composition
The Balanced Bundle Fund is a diversified portfolio composed of approximately 60% shares and 40% bonds. Money is invested across countries and industries to give a broad representation of the overall market.
Provider
The name of the underlying fund is the ‘Vanguard LifeStrategy 60% Equity Fund’, and it is provided by Vanguard Investments UK Limited.
Risk level
4 out 7 from industry standard.
Past Performance
Avg. annual return: 8.76% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard LifeStrategy 60% Equity Fund
Key Investor Info: Vanguard LifeStrategy 60% Equity Fund
Growth Stack Fund
Composition
The Growth Stack Fund is a diversified portfolio composed of approximately 80% shares and 20% bonds. Money is invested across countries and industries to give a broad representation of the overall market.
Provider
The name of the underlying fund is “Vanguard LifeStrategy 80% Equity Fund”, and it is provided by Vanguard Investments UK Limited.
Risk level
5 out 7 from industry standard.
Past Performance
Avg. annual return: 10.64% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard LifeStrategy 80% Equity Fund
Key Investor Info: Vanguard LifeStrategy 80% Equity Fund
Tech Giants Fund
Composition
Technology shares (like Facebook and Apple).
Provider
The name of the underlying fund is the 'Legal & General Global Technology Trust', and it is provided by Legal & General (Unit Trust Managers) Limited.
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 27.93% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Legal & General Global Technology Trust
Key Investor Info: Legal & General Global Technology Trust
The Medic Fund
Composition
Shares of Healthcare, Pharmaceuticals and Biotechnology companies.
Provider
The name of the underlying fund is the ‘Legal & General Global Health & Pharmaceuticals Index’, and it is provided by Legal & General (Unit Trust Managers) Limited.
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 10.70% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Legal & General Global Health & Pharmaceuticals Index
Key Investor Info: Legal & General Global Health & Pharmaceuticals Index
Clean & Green Fund
Composition
Shares of companies selected for their social responsibility.
Provider
The name of the underlying fund is the ‘ASI UK Ethical Equity Fund’, and it is provided by Aberdeen Standard Fund Managers Limited.
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 7.40% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: ASI UK Ethical Equity Fund
Key Investor Info: ASI UK Ethical Equity Fund
Rising Stars Fund
Composition
Shares of companies located in emerging markets around the world.
Provider
The name of the underlying fund is the ‘Vanguard Global Emerging Markets Fund’, and it is provided by Vanguard Global Advisers, LLC (VGA).
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 8.17% (4-year avg. as of 8th March 2021, as fund was launched in 2016).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard Global Emerging Markets Fund
Key Investor Info: Vanguard Global Emerging Markets Fund
American Dream Fund
Composition
A wide range of US company shares that tracks the performance of the S&P Total Market Index.
Provider
The name of the underlying fund is the ‘Vanguard U.S. Equity Index Fund’, and it is provided by Vanguard Global Advisers, LLC (VGA).
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 16.96% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard U.S. Equity Index Fund
Key Investor Info: Vanguard U.S. Equity Index Fund
Best of British Fund
Composition
Shares of the 100 largest public companies in the UK, also known as the FTSE 100.
Provider
The name of the underlying fund is the ‘Vanguard FTSE U.K All Share Index’, and it is provided by Vanguard Investments UK, Limited (‘VIUK’).
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 6.40% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard FTSE U.K All Share Index
Key Investor Info: Vanguard FTSE U.K All Share Index
European Essentials Fund
Composition
Shares of large and mid-sized companies in developed markets across Europe (excluding UK).
Provider
The name of the underlying fund is the ‘Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund’, and it is provided by Vanguard Investments UK, Limited ("VIUK").
Risk level
6 out 7 from industry standard.
Past Performance
Avg. annual return: 10.84% (5-year avg. as of 8th March 2021).
Fund results do not include Plum fees. Past performance is not a reliable indicator of future results. See below for more on this fund:
Fund details: Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund
Key Investor Info: Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund
When making investment decisions, one of the most important things to consider is when you'll need that money you're investing back 🤔
The longer you can leave your money in an investment, the more time you have to take advantage of compounding (the principle by which any earnings are reinvested so you can then generate earnings on earnings) 💰
Ultimately, the most important thing when investing is to build a strategy that matches your own appetite for risk, over a time-period that works for you! Whatever your strategy… we hope you'll join us 👨👩👧👦
If you would like to know more about investing through Plum, then you can check out our website.
Remember, your capital is at risk if you invest and past performance is not a reliable guide to future performance.
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