There’s a reason why certain principles, when applied consistently, tend to yield success — in life, in business, and especially in investing. Over time, proven methods produce reliable outcomes.

One of the most common questions investors ask is: “What sort of return can I expect from my portfolio?”
The answer isn’t always straightforward — it depends on your personal goals, time horizon, and risk appetite. But a helpful starting point is to consider your real return — that is, your return above inflation.

Inflation represents the erosion of your money’s purchasing power. So the first job of any long-term investment strategy is to protect your wealth from inflation. Beyond that, your portfolio’s ability to grow in real terms depends on the risk you’re willing to take and the mandate of the fund or investment solution you’ve chosen.

What Can You Expect?

In general terms, the higher the risk in your portfolio, the higher the expected return over the long term. An equity-heavy portfolio might aim to outperform inflation by several percentage points annually, while a low-risk income portfolio will likely target a more modest return — but with far less volatility.

The actual figures may shift over time and across geographies, but the principle remains: returns should be evaluated relative to the level of risk and the stated objective of the portfolio.

Rather than chasing the latest market trend or trying to outperform in every quarter, investors are better served by focusing on whether their portfolio is delivering in line with its stated mandate over time.

Setting Expectations, Managing Outcomes

As wealth managers, part of our responsibility is to match our clients with portfolios that align with their objectives, and then help them stay the course — even when markets test their patience.

That begins with understanding what the fund manager has committed to delivering. At NFB, we conduct a rigorous due diligence process when selecting the funds on our Houseview. This includes ongoing engagement with managers to assess whether their strategies remain aligned with the portfolio’s original mandate.

Unlike the famous Forrest Gump line, we believe you should know what you’re getting from your box of chocolates.

Let Managers Manage

Too often, investors are tempted to move capital based on short-term underperformance, chasing what’s “hot” instead of staying invested according to plan. But skilled portfolio managers manage with a long-term lens. They make asset allocation decisions that may not always yield immediate results — especially in volatile environments — but are carefully chosen with the portfolio’s mandate in mind.

Recent years have delivered no shortage of challenges: global health crises, geopolitical tensions, inflation surges, and shifts in monetary policy. These disruptions have led to market volatility and valuation extremes across asset classes. Yet as conditions begin to normalise, many diversified, mandate-driven portfolios are returning to their expected performance ranges.

Why Mandates Matter

Take Balanced funds, for example. Their goal is not to deliver the highest return in any one year, but to balance growth with risk over a full market cycle. When these portfolios stay true to their investment objectives — maintaining discipline through changing conditions — they are more likely to deliver consistent, inflation-beating returns in the long run.

The same applies to income-oriented and conservative strategies. While their targets may be lower, they prioritise capital preservation and steady income, which is exactly what their investors need. That’s the power of clearly defined mandates.

Trust. Patience. Process.

The core message for investors? Trust the process.
When you’ve chosen a portfolio aligned with your needs, goals, and risk profile — and that portfolio is managed with discipline and purpose — the best thing you can do is stay the course.

Investment success is rarely about reacting to the moment. It’s about consistency, clarity, and letting your portfolio manager deliver on their promise.

Or, in the spirit of Forrest Gump: “Life may be like a box of chocolates… but with a managed portfolio, you know exactly what flavour you’re getting.”