| Defensive | Cautious Risk 4 | Cautious Risk 5 | Balanced | Mod Adventurous | Adventurous | Ethical | |
| Actual Performance | 4.20% | 5.23% | 6.36% | 9.70% | 10.97% | 11.90% | 8.64% |
| Benchmark | 2.58% | 2.66% | 3.15% | 3.86% | 4.38% | 4.92% | 5.33% |
| Outperformance | 63% | 97% | 102% | 150% | 150% | 142% | 62% |
Our aim of each risk weighted portfolio, is to achieve consistently better results than the portfolio’s own specific benchmark. The benchmark we use is a passive (ETF) portfolio, which combines the indexes of the markets in the same percentages as we invest. (The only exception is the Ethical Portfolio which uses a passive ethical tracker).
So, in simple terms it’s a measure of what anyone could do for themselves if they didn’t want to research more bespoke funds, but just bought all the assets in each market instead.
To justify to clients why they should consider our advice and investment solutions, we must consistently produce stronger returns than the benchmark otherwise why have us?
Over the first six months the portfolios exceeded the benchmarks by around 63% for the Defensive fund, up to around 142% for the Adventurous.
These are pleasing results but they need to be seen in the context of the last 7-8 years.
There have been many times during that period when markets wobbled alarmingly, and the emotional strain of watching values decline can be considerable.
What we know from studying the best practices of consistently successful investors, is that these are in fact times of opportunity to acquire high quality holdings at bargain prices, which will bear bountiful fruit at a later time.
So yes the performance this year so far has been strong, and that’s gratifying, but to all our clients who held on steadfastly through more trying periods we thank you for your trust, and are delighted you are now reaping the financial rewards.
You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.