In this article you can discover the investment performance for 12 different asset classes over various timeframes. For all asset classes there is data for 1, 3 and 5 financial years, and for most asset classes there is also data over 7, 10 and 15 financial years.
Note: A financial year covers 1 July to 30 June the following year, whereas a calendar year covers 1 January to 31 December. If you are looking for asset sector performance over calendar years see SuperGuide article Asset sector performance: Returns over 1 to 15 calendar years (to December 2018).
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 3 financial years. Following that we have provided summary tables for each asset class.
Asset Sector Performance (results to 30 June 2019)
The top performers over the last financial year were Australian Listed Property (+19.4%), Global Listed Infrastructure (hedged, +14.9%), Private Equity (+12.7%), International Shares (unhedged, +11.9%) and Australian Shares (+11.4%).
The depreciation of the Australian dollar from US$0.74 to US$0.70 boosted the performance of Unhedged International Shares compared with Hedged International Shares which rose just 6.6%.
Chant West senior investment manager, Mano Mohankumar says: “It was an interesting year in that all asset sectors produced positive returns and the dispersion of returns across most major sectors wasn’t as wide as it normally is.”
Private Equity has been a consistent performer over the past 10 years, coming out on top over a 3-year period (+13.8%) and 5-year period (+14.2%).
Over a 10-year period Australian Listed Property (+14%) is the clear winner ahead of Global Listed Property (+12.9%), Private Equity (+12.5%) and International Shares (unhedged, +12.4%). All other asset classes achieved average returns above 6%, except for Cash which averaged 3% per year.
When looking over a 15-year period the impact of the GFC is clear. Returns for Australian Shares and International Shares are lower than their returns in more recent periods but still well above inflation.
|1 yr (%)||3 yrs (% pa)||5 yrs (% pa)||7 yrs (% pa)||10 yrs (% pa)||15 yrs (% pa)|
|International Shares (Hedged)||6.6||12.0||8.2||11.9||11.3||7.0|
|International Shares (Unhedged)||11.9||14.0||13.2||16.9||12.4||6.9|
|Australian Listed Property||19.4||8.4||13.8||14.8||14.0||5.9|
|Global Listed Property||7.7||5.4||7.5||10.2||12.9||–|
|Global Listed Infrastructure (Hedged)||14.9||10.0||9.9||13.3||–||–|
|International Bonds (Hedged)||7.2||3.1||4.8||5.2||6.6||6.8|
Source: Chant West
Note: The table shows the performance of all the main asset sectors over different time periods to the end of June 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.
To see asset sector performance across for the past 4 financial and calendar years across various timeframes, see SuperGuide’s Asset Sector Performance Reckoner.
Learn more about super investing in the following SuperGuide articles:
- 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)
- Super investing: How to choose a responsible investment option
- Super investing: Should you change your investment option?
- Super investing: How to change your investment option
- Super investing: Are you investing in infrastructure?
- Super investing: What are listed and unlisted investments?
- Super investing: What is your risk profile?
- How to choose an investment option for your pension
Learn more about investment performance over financial years in the following SuperGuide articles:
Learn more about investment performance over calendar years in the following SuperGuide articles:
- Best performing pension funds over 5 calendar years (to December 2018)
- Best performing super funds over 5 calendar years (to December 2018)
- Asset sector performance: Returns over 1 to 15 calendar years (to December 2018)
- Super fund performance over 26 calendar years (to December 2018)
- Best performing super funds over 15 calendar years
- Best performing super funds over 1 calendar year (to December 2018)