Barclays
CapitaEquity Gilt Study 2006 is the 51st annual edition of Barclays
Capital's flagship publication and is one of the oldest and most
respected continually published research document in the City.
Since 1956, the Study has provided investors with reliable long term
data series for nominal and real returns from UK and US financial
assets. The UK data series begins in 1899 whilst the US series
starts in 1926. "Aside from the historical data presented in the
Study, Barclays Capital also addresses various topics that are of
relevance to the long term investor or asset allocator" said Tim
Bond, Head of Global Asset Allocation Strategy and the primary
author of The Equity Gilt Study. "Whilst most financial analysis is
generally focussed on the short term, the long historical horizon of
the Equity Gilt Study provides an appropriate setting to consider
broader issues that are often neglected by the markets."
| Last |
2005 |
10
years |
20
years |
50
years |
105
years* |
| Equities |
18.9 |
4.2 |
6.7 |
7.0 |
5.2 |
| Gilts |
6.0 |
5.7 |
6.2 |
2.3 |
1.2 |
| Corporate
Bonds |
9.8 |
8.0 |
|
|
|
| Index-Linked |
6.7 |
5.3 |
4.8 |
|
|
| Cash |
2.7 |
2.8 |
3.9 |
2.0 |
1.0 |
 |
Note:
* entire sample
Source: Barclays Capital. |
A £100 invested in UK
shares in 1899, would have been worth £22,426 at the end of 2005, and that figure
is adjusted for inflation. However, that result would have been
dependent on the
reinvestment of all the dividends since 1899.
If the dividends had been spent, the original £100
investment would be worth £197 in real terms. So dividends make
a big difference.
Click here for 2006 Report |
