GoldCore Cautious Portfolio
The average annual return of the portfolio for the best part of the last 40 years has been 6.5%pa net of the fund management costs.
The annual advisory fee is 0.85%pa
Therefore a cautious investor can expect an average annual return after annual all fees have been deducted of between 4%pa and 6%pa.
For comparison, since 1995 the average annual return of interbank cash deposits as measured by 1 month London InterBankOfferedRate (LIBOR) has been 3.58%pa
Average annual returns
The return over the 12 months to end Feb 2010 was 8.76%
The return over the 3 years to end Feb 2010 was 4.78%pa
The return over the 10 years to end Feb 2010 was 4.28%pa
Looking at rolling 5 year periods since 1971
The average annual return has been 6.71%pa
The worst 5 year period returned 2.86%pa
The best 5 year period returned 12.07%pa
Therefore there is some risk that this portfolio could underperform the returns available from a deposit account, but we believe that on average the cautious portfolio would deliver a better return than any tracker bond (which would of course return initial capital with no interest) in a down market.
See imporant backtesting disclosure here