An asset manager follows an active international asset allocation strategy. The average execution cost for a buy or a sell order is forecasted at 0.6%. On the average, the manager turnovers the portfolio once a year. Various administrative costs, including custodial cost amount to 0.5% per year of assets under management. The annual management fee is 1% of assets under management. The annual expected return before costs is 14% compared to an expected return of 10% on a passive global benchmark (some global index). What is the net annual expected return for the client?Should the client expect the portfolio to outperform the global index used as benchmark?