|Source: Capital Pixel|
The performance of the asset classes comprising the diversified portfolio over the 1st 9 months of 2012 along with component weights and expense ratios are shown in the following table constructed with data from Morningstar :
The overall portfolio has achieved a return of 11.02% year-to-date.
As noted above, there has been plenty of news and reasons for investors to stay on the sidelines in this market. E urope, Asia, weakening corporate profits, "fiscal cliff" - you name it. And, in fact, judging by the returns, many big players have stayed on the sidelines and haven't participated. These include active mutual funds, hedge funds, huge state pension funds, and college endowment funds.
This portfolio would be appropriate for someone in their 30s or 40s with a slight conservative bent. As such, it is a useful benchmark for your own management or to put in front of your advisor. If you haven't achieved a return year-to-date close to 11%, you should at least learn why. It could be because you have a more conservative allocation or you or your manager guessed wrong in picking stocks/timing the market or even because you are in high cost funds.
If your return is higher than 11%, pat yourself on the back!
Disclosure: This post is for educational purposes only. I own for myself and my clients some of the funds mentioned above.