Asset Class Returns for Calendar 2019

Most major growth asset classes rose strongly during calendar 2019, recovering from the rocky period experienced in the three months leading up to Christmas 2018.

Australian Equities (+23.4%) and International Equities (+28.0%) were the clear standouts.  These returns however should be viewed in a much longer term context – that is, 2019 total returns were exceptionally strong and well above long-term averages which are nearer 9%pa and 7%pa respectively for these asset classes.

Unsurprisingly, with record low interest rates globally the Cash asset class brought up the rear of the field with a 1.3% annualised return.  As we have cautioned in the past however, Cash serves a greater purpose than just targeting a return on investment – it plays an important liquidity (access to cash reserves) role in any portfolio or investment strategy.

Click on the table below to take a closer look at long-term asset class returns.

Source: Morningstar

*Analysis conducted using the lesser of twenty years or since inception data. Cash -RBA Bank accepted Bills 90 Days; Aust. Fixed Interest -Bloomberg AusBond Composite 0+ Yr TR AUD; Intl. Fixed Interest (H)-BarCap Global Aggregate TR Hdg AUD; A-REITs -S&P/ASX 300 A-REIT TR; Global REITs (H) -FTSE EPRA/NAREIT Dv REITS TR Hdg AUD; Aust. Equity -S&P/ASX 200 TR; Small Caps -S&P/ASX Small Ordinaries TR; Intl. Equity -MSCI World Ex Australia NR AUD; Emerging Markets -MSCI EM GR AUD; Infrastructure (H) -S&P Global Infrastructure NR Hdg AUD; Commodities -Rogers International Commodity TR AUD; Hedge Funds -Credit Suisse Hedge Fund TR AUD. # Figures are to previous month
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