Real and nominal returns by asset class
1900-2009
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Investments that are volatile in the short term...
Returns above inflation over 1 year periods (1900 - 2009)
80%
60%
40%
% pa
20%
0%
-20%
-40%
Period ended 31 December
Australian shares
Australian debt securities
Australian cash
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on
copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment
Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
20
10
20
05
20
00
19
95
19
90
19
85
19
80
19
75
19
70
19
65
19
60
19
55
19
50
19
45
19
40
19
35
19
30
19
25
19
20
19
15
19
10
19
05
19
00
-60%
…have produced higher returns over most long periods.
Returns above inflation over 20 year periods (1900 - 2009)
20.0%
15.0%
5.0%
0.0%
-5.0%
20
10
20
05
20
00
19
95
19
90
19
85
19
80
19
75
19
70
19
65
19
60
19
55
19
50
19
45
19
40
19
35
19
30
19
25
-10.0%
19
20
% pa
10.0%
Period ended 31 December
Australian shares
Australian debt securities
Australian cash
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on
copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns
Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Annual returns of Australian shares
1900 – 2009 (nominal)
80.00%
60.00%
40.00%
20.00%
0.00%
-20.00%
-40.00%
Year Ending 31 December
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on
copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment
Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
1945
1940
1935
1930
1925
1920
1915
1910
1905
1900
-60.00%
Annual returns of global shares ($A hedged)
1900 – 2009 (nominal)
90%
70%
50%
30%
10%
-10%
-30%
20
05
20
00
19
95
19
90
19
85
19
80
19
75
19
70
19
65
19
60
19
55
19
50
19
45
19
40
19
35
19
30
19
25
19
20
19
15
19
10
19
05
19
00
-50%
Year ending 31 December
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on
copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment
Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Value of $100 invested for the last 30 years
Values shown are above inflation ie "real returns"
$10,000
Australian shares $917
$1,000
Cash $334
$100
09
31
/1
2/
20
04
31
/1
2/
20
99
31
/1
2/
19
94
31
/1
2/
19
89
31
/1
2/
19
84
19
/1
2/
31
31
/1
2/
19
79
$10
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted
books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003,
ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Value of $100 invested for the last 60 years
Values shown are above inflation ie "real returns"
$10,000
Australian shares $3,864
$1,000
Cash $187
$100
$10
/1
2/
31
/1
2/
31
/1
2/
31
20
04
20
99
19
94
/1
2/
31
/1
2/
31
/1
2/
31
19
89
19
84
19
79
/1
2/
31
/1
2/
31
/1
2/
31
19
74
19
69
19
64
/1
2/
31
/1
2/
31
/1
2/
31
19
59
19
54
19
49
19
/1
2/
31
09
$1
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted
books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003,
ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Value of $100 invested for the last 110 years
Values shown are above inflation ie "real returns"
$1,000,000
Australian shares $284,408
$100,000
$10,000
$1,000
Cash $209
$100
$10
31
/1
2/
18
31
99
/1
2/
19
04
31
/1
2/
19
31
09
/1
2/
19
14
31
/1
2/
19
31
19
/1
2/
19
24
31
/1
2/
19
31
29
/1
2/
19
31
34
/1
2/
19
31
39
/1
2/
19
31
44
/1
2/
19
49
31
/1
2/
19
31
54
/1
2/
19
31
59
/1
2/
19
31
64
/1
2/
19
31
69
/1
2/
19
74
31
/1
2/
19
31
79
/1
2/
19
31
84
/1
2/
19
31
89
/1
2/
19
31
94
/1
2/
19
31
99
/1
2/
20
31
04
/1
2/
20
09
$1
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted
books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003,
ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.