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.
*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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