Measuring Performance
Western Pacific Financial Group Pty Ltd is unique not only in the way we manage your portfolio, but also in the way we project and measure our performance.
Our clients tell us this is the simplest and most sensible way to talk about investment returns.
At Western Pacific Financial Group Pty Ltd, our aim is to provide the best possible returns for clients, in a consistent and conservative manner, irrespective of the performance (positive or negative) other portfolios may achieve.
We do not aim to provide the highest possible return to clients each and every year, but we do aim to deliver consistent positive returns on a yearly basis and in any event over the recommended minimum investment time frame of each portfolio.
If competitors can achieve a return of 15% over a given year for their clients, and our portfolio can achieve a 10% return, we are happy.
If they make -10% and we make +5% then we are also happy.
But if they make -10% and we make -5%, then (in normal market conditions) clearly we are not happy as we have delivered a negative return to our clients. A negative return can severely effect longer term performance.
In keeping with our focus on absolute returns, we have set benchmarks for each portfolio.
For instance, if your risk profile is determined by our adviser as “balanced”, you could reasonably expect an annual return equivalent to the cash rate, plus an additional 2.0% to 3.0%.
That means the standard bank percentage rate on a cash investment for that period (let’s say 5% for the sake of this exercise) plus an extra 2.0% to 3.0%. A total between 7.0% to 8.0%per annum (net of all fees).
That is our forecast performance averaged over a five year period for an investor with a “balanced” risk profile. We advise you on what return you could reasonably expect and then aim to out perform it.
The chart below illustrates our current benchmarks relating to each portfolio type.
Please note that the information contained here is of a general nature only and has been prepared without taking account of your objectives, financial situation or needs. Accordingly you should consider the appropriateness of this information, having regard to those matters, before investing.
Our Benchmarks
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Notes:
All return projections are based on reasonable assumptions about future investment market returns, as such however no guarantee can or is given that the projections will be achieved.
Projections have assumed a constant cash rate of 5% p.a. over the forecast period (5 years). Any material change to that rate may affect the projected returns.
Projections have been made on the basis of being net of all investment management and administration fees, however before tax.