Saturday, January 12, 2019

Marquette AIM Funds Performance (as of 12/31/2018)

The Applied Investment Management (AIM) Funds Faced a Challenging Market in 2018; However, the Small Cap Fund Continued to Outperform

As most observers of the financial markets are aware, 2018 investment returns were strongly impacted by the 4th quarter bear market. 

Nevertheless, the AIM Small Cap Fund outperformed the Russell 2000 by nearly 300 basis points for the year. 

Unfortunately, the AIM International Fund did not fare as well in Q4 as the benchmarks - and performance lagged the international index by nearly 200 basis points for the year. 

The shorter duration strategy of the AIM Fixed Income Fund also resulted in sub-index performance when interest rates plunged in the last two months of 2019.

In short, 2018 was an amazing learning experience for the students in the AIM program - since many of the students had never experienced a bear market.  Valuable lessons were learned about risk management and the power of holding a widely diversified portfolio. 

While 2019 is off to a strong start, the students in the AIM program are aware that market volatility is back and that holding momentum stocks is not a sure-fire investment strategy. Careful fundamental analysis will be needed to navigate the challenges of 2019.