Over the last five years, international equities have posted strong positive returns. In the case of the MSCI World Index GTR EUR (“MSCI World Index”) and the Friends First International Equity fund (the “International Equity Fund”), the annualised returns over the five years to 6 April 2018 (the “Period”) have been 11.3% and 10.6% respectively.
Chart 1 below illustrates the point graphically for the MSCI World Index and the International Equity Fund. The progression of the value of the MSCI World Index and the International Equity Fund has not been entirely smooth.
The MSCI World Index suffered a maximum peak-to-trough trough fall in value of 19.5% while the International Equity Fund suffered a maximum peak-to-trough fall in value of 23.2%. Notwithstanding the less-than-smooth progression, the annualised returns have been impressively in the double-digit category.