Performance of 70% Equity Portfolio?

Mothman

Can anyone advise which would be the best benchmark to use to gauge how a portfolio has performed which is 70% invested in equity funds (mainly UK & European) and 30% in a global bond fund.

£100k was invested in March 1999 and had grown to £189k by March 2015. I have calculated that this is about 4% pa growth after charges and wondered if this was a good bad or indifferent perfomance when taking into account that the period includes two market crashes.

Thanks

bigadaj

Probably sounds about average. Starting point wasn't far off a market high which was only recently exceeded, long term returns would be 2-3% above inflation minus charges so in a similar ball park.

Mothman

Thanks for the reply.

Which measure of inflation is best used for investments. There is a calculator on HL site which uses RPI, is this the preferred measure for investment performance?

Malthusian

Some (including the government) argue CPI is more representative of the average person's cost of living. Most notably it excludes mortgage payments - and most people don't rely on rising investments to pay their mortgage. However, if you're comparing with investment performance, using RPI errs on the pessimistic side because it is generally higher.