The portfolio aims to deliver a return of 6% pa above inflation (before fees) over 7 year periods by limiting the risk of negative returns over this time frame. This careful risk management approach means there may be times when the portfolio doesn’t achieve its return objective. In most circumstances the portfolio is expected to provide a positive return over 7 year periods, although there will sometimes be negative returns over shorter periods.
The portfolio has achieved this return target over the 7 years to 28 February 2017, producing a positive return of 10.6% (before fees), which was 8.4% above inflation, and has controlled risk over the period.
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