To say investors have been having a rocky 2015 is putting it mildly, with concerns over China’s worsening slowdown, a continuing commodities rout, and emerging markets getting pummeled.
And all that before Black Monday came along and pulled the rug from under our feet as Chinese stocks fell to the floor on 24 August.
But some funds have been performing worse than others. FE Research has put together the seven active funds giving investors the worst headaches.
It’s not hard to see the common ground here: Emerging markets and commodities funds are struggling the most, as Patrick Enright, analyst at FE Research said:
When observing negative returns, investors should look no further than the following three sectors this year: emerging markets bonds and equities and specialist, for commodities funds.
The worst performer has shed an uncomfortable 41.6 per cent over the year, looking at the maximum drawdown, or the distance from peak to trough.
The maximum drawdown highlights how much the unluckiest investor would have lost over this period, had they entered in the fund at the wrong time.
Emerging markets were already getting hammered by the commodities rout, and being dependent on the Chinese economy, Black Monday hit them particularly hard.
But it’s not bad news for everyone. Some emerging market funds are not just doing well despite the Black Monday stock market rout, but actually have returns in the double-digits.