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How might my portfolio perform?

The following example shows the expected long-term return on a portfolio invested in UK equities, using data as at 15 May 2008:

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Bank of England inflation target

2.0%

Trend real growth of UK economy

2.5%

 

_________

Nominal GDP growth

4.5%

Dividend yield on FTSE All Share Index

3.5%

 

_________

Reasonable expectation of return on UK equity portfolio over medium-term

8.0%

Warning: Short-term fluctuations in the value of investments and the income from them means that this return may not always be achieved and that loss of capital may occur. Also returns on investment in overseas markets may follow different patterns.