Long Term GMI Performance

We update our returns annually so our clients can judge the consistency of our performance. However, don’t forget the cliché – past performance is not necessarily an indicator of future performance, especially in the shorter term.

GMI Growth portfolio average: Here we define Growth portfolios as having more than 65% in growth assets, i.e. less than 35% of funds mandated to fixed interest or income stocks.

Average GMI Growth benchmark: Each GMI client has their own benchmark based on their particular asset mix. The benchmark we show here is based on an average of these benchmarks.

A $1,000 investment in an average GMI Growth portfolio in 2002 has, over the last 10 years, compounded to NZ $1,708.

Over this particular period that’s an average return – after fees, brokerage and tax – of 5% per annum compared to the relevant benchmark return of 1.2% per annum. The global financial crisis and its aftermath have put a real dent in performance over this period.

The next graph gives the year-by-year performance of those Growth portfolios and contrasts it with the benchmark performance. It is evident that out-performance has come as much from minimising damage in down years as scoring out-performance in the up years. That was especially evident during the 2007-2009 credit crisis.

GMI Growth portfolio average: Here we define Growth portfolios as having more than 65% in growth assets, i.e. less than 35% of funds mandated to fixed interest or income stocks.

Average GMI Growth benchmark: Each GMI client has their own benchmark based on their particular asset mix. The benchmark we show here is based on an average of these benchmarks.

As the graph above illustrates, over the past 10 years our Growth portfolios have out-performed the benchmark for 9 of them.

See our annual investment performance for more information on individual asset classes and for Balanced portfolio and Income portfolio returns.

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