In this article you can discover the investment performance for 12 asset classes over various timeframes. For all asset classes there is data for 1, 3, 5, 7 and 10 calendar years, and for most asset classes there is also data over 15 calendar years.
Note: A calendar year covers 1 January to 31 December, whereas a financial year covers 1 July to 30 June the following year. If you are looking for asset sector performance over financial years see SuperGuide article Asset sector performance: Returns over 1 to 15 financial years (to June 2019).
We are grateful to Chant West for providing this information because it can assist readers to better understand the short-term and long-term performance of different assets over time. This can help with the selection of investment options for your super fund or in determining your investment strategy if you have an SMSF.
In the tables below you can find asset sector performance over 1 to 15 years for the last 4 calendar years. Following that we have provided summary tables for each asset class.
Asset Sector Performance (Results to 31 December 2019)
The top performers over the last calendar year were International Shares (Unhedged 28%, Hedged 27.4%), Australian shares (23.8%), Global Listed Infrastructure (Hedged 24.2%), Global Listed Property (21.2%) and Australian Listed Property (19.6%). However, all asset classes produced positive returns with cash (1.5%) bringing up the rear.
Unlisted Infrastructure triumphed over the 5-year period, with an average return of 12.9% per year. Private Equity was second best performer over 5 years, with an average annual return of 12.7%, followed by International Shares (Unhedged)with an average annual return of 12.2%.
Over a 10-year period Private Equity and Global Listed Infrastructure (Hedged) were equal winners, achieving average annual returns of 12.7%. International Shares (Unhedged 12.3%) also performed strongly, followed by Unlisted Infrastructure (11.7%) and Australian Listed Listed Property (11.6%).
When looking over a 15-year period, Australian Shares is the winner with average annual returns of 7.9%, followed closely by International Shares (Unhedged 7.7%, Hedged 7.2%). However, there is only 15-year data available for 7 of the 12 asset classes.
|1 Yr (%)||3 Yrs (% pa)||5 Yrs (% pa)||7 Yrs (% pa)||10 Yrs (% pa)||15 Yrs (% pa)|
|International Shares (Hedged)||27.4||11.8||9.2||12.0||10.3||7.2|
|International Shares (Unhedged)||28.0||13.8||12.2||17.1||12.3||7.7|
|Australian Listed Property||19.6||9.5||11.2||12.7||11.6||4.9|
|Global Listed Property||21.2||8.0||6.8||9.3||10.7||–|
|Global Listed Infrastructure (Hedged)||24.2||11.8||9.2||12.8||12.7||–|
|International Bonds (Hedged)||7.2||4.1||4.2||4.8||6.3||6.5|
Source: Chant West
Note: The table shows the performance of all the main asset sectors over different time periods to the end of December 2019. Chant West have used market indices for all sectors other than private equity and infrastructure. For those sectors, for which no indices exist, they have used the returns of a major fund in our survey that are representative of those markets.
Learn more about super investing in the following SuperGuide articles:
- How investing in infrastructure boosts your super account
- What are listed and unlisted investments and why does it matter?
- How to choose an investment option for your super pension
- Risk profiling and your investment choice
- Understanding the dynamics on which your super fund invests
- SMSF investment rules: What every trustee should know
- How to create an SMSF investment strategy (including examples)
Learn more about investment performance over calendar years in the following SuperGuide articles:
Learn more about investment performance over financial years in the following SuperGuide articles: