Financials Funds: Which Did Best in the Sell Off?

As the sector undergoes de-rating, we look at what drove performance in the sell off and tell you who fared best.

Ash Kumar, 29 February, 2008 | 12:32PM
The financials sector has been the prime casualty of the US sub-prime mortgage fiasco and the ensuing credit crunch. Now, after several months of relentless beating, we'll take a look at who came through the fray with strength and who did not. Short-term performance isn't often meaningful, but it can help shed light on managers' ability to navigate different market environments.

The destruction of value in the sector since June of last year is truly staggering. From its trough in February 2003 to its peak in May 2007 when it touched its peak, the MSCI World Financials index returned 18.08% per year annualised. However, from 1 June through 28 February, the index has plunged a full 21.8%.

The capitulation financials stocks have undergone in the short-term is also reflected in the per

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