The AnnualRank search facility is designed to allow you to rank various services according to how well their current years’ performance compares with their performance in previous years. In other words, are they doing as well this year as they have done in past years? Are their best years behind them or, if I subscribe now, can I expect them to do the same, if not better, than they have done in the past.
In order to answer these questions, the AnnualRank search compares two key performance parameters – the Current Year Annualized Return and the Average Annual Return.
Current Year Annualized Return is the rate of return that the service could be expected to earn if its performance for the rest of the year matches its performance to date. So it is looking forward to the end of year and, based on a service’s performance from the beginning of the current year to date, calculates a figure that, if its performance remained consistent, would be the service’s Annual Return for the current year.
The Average Annual Return is the average return per year that the service has produced over its lifetime. The Annual Return for each year is based on the change in value of the VAMI. The value of the VAMI begins with a hypothetical $1,000 investment. This amount is then compounded using the service's monthly returns from January through to December. The actual percentage change in the value of the VAMI from one year to another (effectively, from the December value of the previous year to its value at the same time the following year) gives the service’s Annual Return. Its Average Annual Return is then the average of those values.
To use AnnualRank, first choose the type of service you want to asses (Options, Stocks or Market Timers, or All if you wish). Follow the prompts to refine your search so you’re targeting exactly the range of services you want. Next, select the benchmark against which you want to compare the services - there are six in all to choose from.
When the search results are displayed, they will be arranged in five columns across the page:
- Average Annual Return
- Current Year Annualized Return
- Service Increase/Decrease
- Increase/Decrease as %
- Service/Benchmark Difference
The first two columns give the raw results for each service. The third column is the difference between columns one and two, while the fourth column is that difference measured as a percentage. The final column is the difference between the performance of the service verses the performance of the benchmark.
