The Fisher investments annual returns in 2020 deserve a closer look for investors. As a top global financial services firm managing over $130 billion, Fisher Investments’ performance has significant influence in the investment management sphere. 2020 posed immense challenges with the COVID-19 pandemic causing massive disruptions across markets. It is thus insightful to analyze Fisher’s returns across their key strategy funds and examine how they navigated the turbulent year. This article will dive into the key facts and figures surrounding Fisher’s 2020 returns across equities, fixed income and multi-asset offerings. The analysis will uncover how Fisher’s performance stacked up against benchmarks and shed light on strategies they employed during the rocky pandemic year.
Fisher’s 2020 returns trailed benchmarks in flagship Global Total Return fund
Fisher Investments’ Global Total Return fund is their flagship offering, representing over 60% of total assets under management. The fund posted a return of 4.81% in 2020, underperforming its blended benchmark of 60% MSCI ACWI/40% Bloomberg Barclays Global Aggregate Index which returned 12.26%. This lagged performance was largely attributed to the fund’s value-oriented approach, which struggled in the growth-dominated market environment of 2020. The pandemic also caused severe volatility and uncertainty which challenged Fisher’s active management strategies.
Equity strategies faced challenges in matching growth-focused benchmarks
Fisher’s core equity offerings, including its International, US and Emerging Markets funds, posted positive single-digit returns in 2020 but failed to match their respective MSCI benchmarks. This reflected the broader trend of value-oriented active equity managers underperforming as growth stocks led markets higher. Fisher’s equity selection appeared to be negatively impacted by exposure to cyclical value sectors like financials and energy. The firm’s investments in smaller companies also generally lagged larger cap names during the risk-off pandemic period.
Fixed income returns were mixed versus benchmarks
Within fixed income, Fisher’s Strategic Income fund returned 5.35% in 2020, outperforming its benchmark Bloomberg Barclays US Aggregate Bond Index by 25 basis points. However, the firm’s US Total Return fund finished just behind the benchmark. Fisher benefited from holdings in investment grade corporate bonds which drove performance in 2020’s low rate environment. But some credit selections and yield curve positioning worked against them as massive Fed intervention distorted traditional fixed income relationships.
Alternatives provide diversification, mixed returns
Fisher offers some alternative investment funds to complement its core offerings. The Multi-Strategy Alternatives fund returned -1.09% in 2020, reflecting the diversified volatility smoothing role of its absolute return positioning. The firm’s Real Estate Securities fund finished the year up 1.09%, underperforming its specialty REITs benchmark by over 600 basis points. This mirrored the broader challenges faced by commercial real estate amidst lockdowns and remote work trends caused by the pandemic.
Active management tested by unprecedented pandemic conditions
The COVID-19 pandemic posed immense challenges for active investment managers like Fisher in 2020. Market volatility reached extreme levels during the initial March downturn while unprecedented central bank intervention distorted normal asset relationships. Fisher’s returns across equities and fixed income faced headwinds from exposure to value/cyclical segments as well as smaller cap names negatively impacted by economic shutdowns. Their active positioning struggled to keep pace as markets experienced a record rally following stimulus measures. Ultimately, Fisher’s 2020 returns highlight how even seasoned active managers can face difficulties navigating once-in-a-lifetime shock events.
The Fisher investments annual returns in 2020 fell short of benchmarks across several key funds reflecting the turmoil and distortions created by COVID-19. As an active manager, Fisher struggled with value-oriented positioning as growth dominated equity markets. Fixed income and alternative funds posted mixed results. Ultimately, Fisher’s disappointing 2020 returns underline the challenge of navigating unprecedented pandemics for traditionally successful investment strategies.