A.I.M. Users Bulletin Board

[ls7550]

Yearly AIM character

As a insight into that style of AIM actual progression I summarised the yearly (April to March UK financial years) results since April 2008 and up to end of March 2021, and observed (from a US investors perspective i.e. US$ gains/US inflation etc.) ...

A reasonable 6% annualised real (after inflation) total return (including interest/dividends) gain since April 2008.

April 2008 was a relatively bad time to start (financial crisis) where the first year saw -8% nominal loss compared to -38% for all-stock (financial crisis).

AIM achieved a similar real annualised compared to 50/50 stock/bond but with just 34% average stock exposure.

Considerably lower Risk/Reward factor (annualised real gain / standard deviation in yearly total gains) than all stock. On a risk parity basis all stock provided a 5% annualised gain (when de-scaled to AIM's risk); Or AIM provided 11.3% versus 9.5% for all stock if AIM was scaled up to all-stock risk.

2019 when stock was down -9% AIM was up +10%, in other years the gains have compared, such as 2010/11 17.5% gains for both. Overall the Pearson correlation was 78% when compared to all-stock.

Clive