Below is a table showing our portfolio investment returns over the last 1, 3 and 5 years to December 2014. On a 3 and 5 year basis our three portfolios on average have outperformed the industry by 2% per annum. Over the last year investment returns have slowed as we have been warning. Equity returns of 17% p.a. for the previous four years are unsustainable resulting in lower equity (Aggressive Portfolio) returns of 9.9% in 2014. We believe 2015 should produce another year of moderate investment returns.
| IOL Portfolio Performances (%) to December 2014 | 1 Year | 3 Years* | 5 Years* |
|---|---|---|---|
| IOL Aggressive Portfolio | 9.9 | 19.4 | 16.7 |
| Industry average | 10.3 | 16.8 | 14.1 |
| Outperformance | -0.4 | 2.6 | 2.7 |
| IOL Moderate Portfolio | 9.4 | 16.8 | 14.1 |
| Industry Average | 9.3 | 14.1 | 12.0 |
| Outperformance | 0.1 | 2.7 | 2.2 |
| IOL Conservative Portfolio | 7.5 | 11.3 | 9.0 |
| Industry Average | 7.0 | 9.0 | 8.7 |
| Outperformance | 0.5 | 2.3 | 0.3 |
* Annual performance
Our recently launched Prosperity World Wide Fund has had a solid start with an annualised return of 10.5%. The fund has a global balanced mandate which is conservatively managed with a bias on preserving capital.
