Skip to main content
A Clear Direction
rss feedour twitterour facebook page linkdin
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Sunday, October 15 2006

Vanguard have recently updated their 'Index Chart', which provides the details of the actual performance of various asset classes over time.

The average performance of each of the growth asset classes from July 1970 to now has been:

  • Australian Shares - 13.3% a year.  $10,000 invested in July 1970 is now worth $508,000.
  • International Shares - 13.7% a year.  $10,000 invested in July 1970 is now worth $551,000.
  • Listed Property Trusts - 14.9% a year.  They have only been around since the early 1980's.

Here is the point of all of this - all growth asset classes have produced remarkably similar returns.  Listed Property Trusts appear to be a little superior, however they only started in the late 1970's/early 1980's and therefore missed the poor market returns of 1973/1974. 

How does this information help us invest our money today?

First of all, the long term returns from these asset classes have been attractive - enough for any person who invests some of their money regularly to create significant wealth over a lifetime.

Secondly, because the returns from all three growth asset classes are remarkable similar, we don't have to worry about picking and choosing which one to invest in.  We can invest in all three.  This strategy will help us reduce the overall volatility of our portfolio, because as one asset class is performing poorly, there is a chance that this will be compensated by another providing a better level of performance.

Should we favour one asset class over any other?  I tend to favour Australian shares, based on some research that suggests the benefits of franking credits are actually an 'unpriced' benefit.  An example growth asset allocation might be:

  • 40% Australian shares
  • 30% International shares
  • 30% Listed property


Posted by: Scott Francis AT 04:56 pm   |  Permalink   |  Email
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy