All Easyvest's portfolios outperformed comparable solutions available in Belgium over the last 3 years but also in 2018 where they largely limit the decline compared to competitors. An Easyvest 8 portfolio (offensive) generated a total net return of 11.0% over 3 years, 8.8% more than the average for Belgian players, and better than any equivalent investment solutions considered. This same portfolio fell by only 5.0% in 2018 while some financial institutions lost up to 12.4%
Easyvest, the best performer over 3 years
Whatever the risk profile considered, Easyvest stands out as the best investment solution available in Belgium since its launch in 2016. During this period, our portfolios generated between 3.1% and 11.7% additional return. compared to competing solutions. Find out more about our great historical performance in the infographic below and on our home page.
Easyvest limits the decline in 2018
Despite the stock market downturn, Easyvest considerably reduces the decline and once again stood out in 2018 as the best investment solution available in Belgium across all investment profiles, offering up to 7.4% better than the available alternatives. This reality goes against the claim that active managers manage to react adequately or even to anticipate market downturn to limit to drop. Our analysis highlighting the risks of active management in declining markets has been confirmed once again in 2018.
Calendar year poorly reflect long-term market performance
It is customary to calculate the financial performance on a calendar year basis, an arbitrary and questionable practice! Indeed, end the year 2018 a quarter earlier and the performance of our portfolios oscillate between 8.4% and 23.0% since 2016, which is twice return calculated at year-end. The annual barometer does not always seem representative of the average market performance and can lead to misinterpretation and frustration. The seasoned investor ignore short-term market volatility to focus on his long-term goal.
Better recurring performance
Easyvest's superior returns since 2016 and in 2018 are not surprising and in line with what has been observed from 2006 to 2016 and demonstrate once again the added value and relevance of the non-speculative approach advocated by Easyvest.
Reasons for this success
The significant difference in performance between our passive approach and traditional active management is mainly due to the sub-optimal investment decisions of active managers trying to beat the market, the frictions related to active investing (e.g. transaction costs, taxes on trading operations) as well as the high fees charged by traditional players and.
What basis for comparison?
Our comparative study considers all the dominant private and retail banks active in Belgium. We observed the annual performance of investment solutions most commonly offered to investors corresponding to three risk profiles: low (Easyvest 3), medium (Easyvest 5) and high (Easyvest 8). Some solutions are offered in the form of a single fund, others in the form of a portfolio of funds.