BOSTON, Apr. 21, 2015 (GLOBE NEWSWIRE) -- In 30 years of monthly investor returns, DALBAR found that equity investors underperformed the S&P 500 to the greatest extent in October, 2008. In this month, equity investors lost 24.21% compared to an S&P loss of 16.80% for a net underperformance of 7.41 percentage points.
The next greatest underperformance occurred in March, 2000, when the S&P surged 9.78% but investors took home only 3.72% for an underperformance of 6.06%.
The underperformance results from bad investor decisions at critical points, the first in the face of severe market declines and the second when the equity market surged.
Underperformance in the face of maximum impact events is attributable to a lack of preparedness and is the subject of the recently released 21st Edition of DALBAR’s Quantitative Analysis of Investor Behavior (QAIB). The 21st Edition also reported:
| Investor Returns | Inflation | S&P 500 | Barclays Aggregate Bond Index | ||||
| Equity Funds | Asset Allocation Funds | Fixed Income Funds | Composite Fund Investor | ||||
| 30 Year | 3.79 | 1.76 | 0.72 | 2.47 | 2.70 | 11.06 | 7.36 |
| 20 Year | 5.19 | 2.47 | 0.80 | 3.34 | 2.28 | 9.85 | 6.20 |
| 10 Year | 5.26 | 2.25 | 0.69 | 3.51 | 2.13 | 7.67 | 4.71 |
| 5 Year | 10.19 | 5.09 | 1.21 | 6.84 | 1.69 | 15.45 | 4.45 |
| 3 Year | 14.82 | 7.15 | 0.72 | 9.57 | 1.34 | 20.41 | 2.66 |
| 12 Months | 5.50 | 2.24 | 1.16 | 3.98 | 0.75 | 13.69 | 5.97 |
The full report of QAIB 2014 is available for purchase from DALBAR by calling 617-723-6400, e-mailing QAIB2014@dalbar.com, or visiting www.QAIB.com.
DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.