When is 12% not a good return?

When your #PersonalBenchmark earned 16.9%.

Investors are generally happy with their returns for 2013. It was a strong year for most markets, and many portfolios were up by double digits and hitting new highs. Unfortunately, most investors don’t know how to judge the performance of their investments. That’s where #PersonalBenchmarking comes in.

Your #PersonalBenchmark is an investment that you can use to compare your own investment performance with. It should be a strategic asset mix made up of indexes or low-fee Exchange Traded Funds. Here’s an example:

10% BofAML Canada Broad Market 1-5 Yr. TR CAD (short term low risk fixed income)
10% iShares Canadian Universe Bond Index (fixed income)
25% MSCI World GR CAD (global stocks)
20% S&P 500 TR (Bank of Canada) CAD (U.S. Stocks)
35% S&P/TSX Composite TR (Canadian Stocks)

This is a #PersonalBenchmark for growth-oriented investors who invest primarily in equities but who also want some bonds and fixed income to reduce volatility. It increased 16.9% over the 12 months to March 31, 2014. The client couple who use this benchmark earned 17.88% over the same period, after management fees, so we know that the managers who are looking after their portfolio are doing a good job.

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