Asset class returns by financial year, but what’s next? Take our quick survey

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It’s always fascinating to look back on a financial year and see the winners and losers, and confirm how tough it is to pick the best asset class in advance. The Morningstar Asset Class Gameboard for 2016/2017 shows the order from best to worst was:

  1. International Equity (unhedged): 14.7%
  2. Australian Equity (ASX/S&P200 Total Return): 14.1%
  3. Australian Small Caps: 7.0%
  4. Cash: 1.8%
  5. International Fixed Interest (hedged): 0.5%
  6. Australian Fixed Interest: 0.2%
  7. Australian Listed Property: -5.6%.

Asset allocation is more important for long-term returns than stock selection, although within each asset class, there are significant successes and failures. For example, last year there was a dramatic difference in performance among Australian A-REITs and it was the big stocks than pushed the overall index down.

These equity returns are far higher than most analysts expected a year ago, and the ‘lower for longer’ has yet to play out. International Equities has hit the jackpot in four of the last five years. Will it do it again?

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What do you expect for 2017/2018?

More important than looking back is what the future brings. We attach three quick questions on which asset class you expect to come first and last in this new year, and how you expect the S&P/ASX200 Total Return Index (including dividends) to perform. The survey is linked here or can be completed below, and will take less than a minute to complete.

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5 Responses to Asset class returns by financial year, but what’s next? Take our quick survey

  1. Reader July 13, 2017 at 7:36 PM #

    No idea, can’t predict it, so won’t be altering any strategy.

  2. Fundie July 13, 2017 at 7:37 PM #

    Flat US market and a correction there in October 2017 will mean that we get dragged down too. When Wall Street sneezes, we get a cold.

  3. Kevin July 15, 2017 at 4:01 PM #

    I have no idea.Strategy will be the same as for decades.Retired now so a bit for DRP and a lot to spend as annual income in retirement.

    More years of listening to experts and crowds telling me how much how I have been wrong for decades,I didn’t $ cost average,I didn’t diversify,I didn’t rebalance on a regular basis.I didn’t pay experts for advice and I didn’t follow crowds.

    I think there will be some very happy charities that get the income from however many millions are left behind.They will be happy that I was cantankerous young bugger that grew into a cantankerous old bugger.

  4. Kevin July 15, 2017 at 4:04 PM #

    I should add that hopefully there will be a few apprentices that listened to me when they were working with me over the years.Sadly I don’t think they did,it can be very mentally tiring fighting the crowd for decades.

  5. Mark July 17, 2017 at 9:01 AM #

    I predict that even though no one can predict future performance, that will not stop people making predictions. I also predict that my prediction will be 100% correct.

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