Kev Toohey, Principal at Atchison presents his analysis of the 2022/23 financial year returns for major investment assets classes over the past 20 years.
- Of the 16 major assets assessed for FY22, commodities and direct property were the only major asset classes to post returns above inflation; albeit underlying direct property valuations are outdated.
- In effect, all major equity and fixed interest asset classes Australian investors are exposed to have gone materially backwards in inflation-adjusted terms over the past 12 months.
- Emerging markets, small cap equities and global government bonds the worst three performing asset classes measured over FY22.
- The majority of major markets underperforming inflation for the first time since FY09.
- FY22 saw marginal differences between Australian equities, unhedged developed market equities and hedged developed market equities, meaning all three were roughly as bad as each other when measured 30 June to 30 June.
- Unpacking underlying global equity markets over the FY sees all major investment styles (value, growth, momentum ect) posting negative returns over the 12 months in local terms, as well as major sectors other than Energy & Utilities posting negative returns.
Below is an analysis of FY returns for major investment asset classes over the last 20 years.
