How to check your return ?
In order to help you assessing your relative performance with regard to a neutral benchmark, tables hereinbefore show on the one hand, returns that might be consider as normal (first table) and on the other hand (second table), returns from which it is suitable to wonder the why and the wherefore.
Returns are set on December, 31 2009.
The benchmark is composed by the MSCI EMU Index that is a stock index net dividend reinvested (for the stock part) and the JP Morgan Government bonds in the European Union (for the bond part). Furthermore, in order to compare yourself with the suitable investment profile, three profiles have been set:
- ‘Defensive’ profile (75% bonds and 25% stocks)
- ‘Balanced’ profile (50% bonds and 50% stocks)
- ‘Agressive’ profile (25% bonds and 75% stocks)
As an example, if your profile is ‘Balanced’ and that you are looking for a benchmark return for the period from the 1st January 2005 to the December, 31 2009; you will find a total return over the whole period of 11.38% (or 2.18% a year). If your return are closer to -18.62% over the period (or -4.04% a year), you should ask yourself some questions.
