Take a look
Arsene Wenger’s 22-year career at Arsenal, one of the longest managerial tenures in football history, comes to an end this weekend. In the here-today, gone-tomorrow world of football management, that’s a seriously long-term investment in one manager and one strategy. Arguably it’s been a successful one, with 3 Premier League titles and 7 FA Cups in the trophy cabinet.
So how would investors have fared if they’d adopted a similar buy-and-hold approach over the past 22 years, and would their savings or investments have kept pace with the price of football?
New analysis from M&G Investments shows that if, instead of going to Arsene’s first home game, you had invested the average 1996/1997 ticket price (£14.50) in a global equities tracker, you could now have a pot of £68.57, an increase of 372.9%.
Unfortunately for Gunners fans, cash savings have failed to keep pace with ticket prices. £14.50 saved into a typical savings account would now be worth £19.44, less than half the current £45 average ticket price at the Emirates.
If you had invested £14.50 in the following ways back in October 1996, here’s what you could have now:
|Asset class||Nominal value after 22 years|
|UK Government bonds4||£53.43|
|UK Residential property5||£51.26|
|Average Arsenal ticket 2017/20187||£45|
|All figures calculated from 01/10/1996- 31/03/2018|
But should investors always sit tight on their investments? Research by M&G Investments has found that nearly half of investors (47%) make adjustments to their investments once a year or less, with 9% never making adjustments.8
Ritu Vohora, Investment Director at M&G, said:
“Since Arsene Wenger joined Arsenal in 1996, we’ve seen the dotcom boom and bust, the Great Financial Crisis and Quantitative Easing, and the emergence of tech giants like Facebook, Google, Twitter and Netflix. The world has changed significantly over the past 22 years and investors need to make sure they are moving with the times.
“Like managing a football club, taking a long-term approach to investing can help to build greater returns for the future. The key for investors is finding the balance between investing for the long term, and not letting their portfolios grow stale. A regular annual review of your portfolio is a good idea, to ensure your investments are still suitable for your personal circumstances and are working as hard as they can.”