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  • 6 months ago
The Yorkshire ISA Experiment to test whether the region’s listed companies can beat the market has passed through its first month – but the results so far are somewhat underwhelming.

The Yorkshire Post has launched a year-long experiment to track all 59 companies headquartered in the Yorkshire and Humber region which are listed on either the main or AIM markets – including the likes of Jet2, Card Factory and Persimmon.

Using the LSE’s excellent virtual portfolio tool, we've ‘bought’ a single share in each company and from the start of July began tracking their collective performance over the course of a year and comparing it to both the average savings rate for cash ISAs as well as the FTSE All-Share Index.

I want to see whether it is possible for Yorkshire to beat the market and if a ‘Yorkshire ISA’ would be worth establishing in real life – albeit using a simplistic method of equal backing for such a wide range of firms which is unlikely to be employed by anyone genuinely investing in the stock market.

However, as of market close on July 31, the ‘Yorkshire All-Share’ list I’ve created is down 3.93 per cent on its starting value, while in contrast the FTSE All-Share has risen 3.73 per cent. Meanwhile, according to Moneyfacts, the average cash savings rate stands at 3.51 per cent; a touch below the 3.52 per cent it started out at when the experiment began.

Read more about the experiment: https://www.yorkshirepost.co.uk/business/the-yorkshire-isa-experiment-our-test-to-see-if-regions-listed-companies-can-beat-the-market-5181207

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Transcript
00:00So can Yorkshire beat the market? Our test to see if that can happen is a month in but
00:06it's off to a shaky start. My name's Chris Byrne, I'm Yorkshire Post Business and Features Editor.
00:11At the start of July I started something called the Yorkshire Eyes for Experiment.
00:14It's basically a test to see, a simple test to see, if Yorkshire's 59 listed companies
00:20can beat the gains from the market, the London Stock Exchange, over the course of a year.
00:26So far, not so good. The Yorkshire All Share list, the 59 companies bought a virtual share
00:36and each one of them is down 3.93% over the course of the month of July. In contrast,
00:42the FTSE All Share, all of the companies listed on the FTSE is up 3.73% while cash savings rate,
00:50the average cash savings rate in the country is 3.5%. Now it's very early days,
00:56investment is long-term gain and the whole point of doing this experiment over a year is to kind of
01:03show that, that what happens one month isn't necessarily what's going to unfold over the
01:09course of a year. But what's happened so far is also a good reminder that investment comes with
01:18risk as well as potential reward. So we'll see how things progress but come on Yorkshire's listed
01:25companies, we can do better as the year progresses. We will see what happens next month. I'll be back
01:31with an update in September as to how the August performance has gone.
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