As we are now well into the first January of the new decade, I thought it might be interesting to take a look at how a range of our Portfolios performed during the past 10 years.
The graph and the table below take into account all fund charges but NOT Adviser Charges or Platform Charges. On an annualised basis these come to approximately 1.3% per annum but this does vary depending on the size of your investment.
The following table provides the annualised percentage growth of each portfolio over the decade but for true comparison purposes, please remember to deduct from these numbers approx. 1.3% to 1.4%, to take into account Adviser and Platform costs.
If you are invested in EBIP 80 and are alarmed to see that its performance fell into the 4th Quartile over the period, please remember that the benchmark against which it is being measured (ARC Sterling Equity Risk PCI (2) (2)) included portfolios containing 100% exposure to equities. Accordingly, we would expect a portfolio only containing 80% exposure to equities to significantly underperform this particular benchmark when markets are rising.
If we could have predicted these returns 10 years ago, I suspect most people would have been very happy, particularly when one remembers all of the market volatility that occurred from time to time, the uncertainty around the EU referendum, Donald Trump’s spat with North Korea and also with China over trade etc. As reassuring as these returns have been, we can of course, never use past performance as an indicator of what might happen in the future.
I will do a similar exercise in 10 years from now and we’ll see where we end up!
If you have any questions concerning this e-mail or any other finance related matter, please do feel to contact me at any time.
With kind regards,
Yours sincerely
Graham Ponting CFP Chartered MCSI
Managing Partner
