Reading fund performance
A performance figure means nothing without its period and its calculation method. Here is how to read them.
A fund's performance is the change in its net asset value over a period, with coupons and dividends reinvested. FondsMaroc shows four standard horizons.
YTD (year to date)
Performance from 1 January to the latest known NAV. Useful for tracking the current year, but dependent on the starting point: compare funds on the same reporting date.
1y, 3y, 5y
Performance over a rolling window ending on the reporting date. Cumulative three-year performance is the total gain over the period. Annualised performance restates that gain as an average yearly rate, which lets you compare different horizons.
Example: +33 % cumulative over three years is roughly +10 % annualised.
Comparing properly
Only compare funds of the same classification, over the same period and the same reporting date. A high return achieved with large swings is not equivalent to the same return achieved in a straight line: that is exactly what risk-adjusted ratios capture.
Past performance
It is no guarantee of future results. A one-year ranking often rewards the market style of the moment more than lasting management quality.
See also
- The Sharpe ratio
Return per unit of risk, and how to read it.
- Volatility and maximum drawdown
The size of the swings, and the worst historical loss.
- Net asset value and net assets
The price of a unit, how it forms and what it tells you.