Author Archives: Mishan

FY22 saw:

• 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were the only major asset classes to post returns above inflation; albeit underlying direct property valuations are outdated.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 are the worst three performing asset classes measured over FY22
• The majority of major markets are 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 from 30 June to 30 June.
• Unpacking underlying global equity markets over the FY sees all major investment styles (value, growth, momentum etc) 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.

Kev Toohey, Principal at Atchison presents his analysis of returns for major investment asset classes over the last 12 months.

• July 2022 saw an almost mirroring of May and June, as equities participated in a relief rally and interest rates fell.
• Small caps and AREITs are prime examples of a July reversal.
• The chart really illustrates the lack of asset classes that have posted monthly returns above the rate of inflation over the last 12 months.
• After trending on top of the list for the first 4 months of 2022, commodities have successively trended down to the last position in July.

The below chart is an analysis of returns for major investment asset classes over the last year.