EQUITIES 2 L(Dcm40)

Noting that these returns are lower when converted Noting that these returns are lower when convertedinto dollars, the report says within equities, emergingmarkets have done better than the developed markets indicesdespite the effect of currency depreciation in thesecountries. In dollar terms, however, the returns have not beenthat strong, with Shanghai giving in only 11.9 per cent, 8.3per cent and 1.3 per cent respectively for the 25, 10 and 5year period, while the Sensex and the Nifty returning 7.9 percent each for the 25 year period and 10.1 per cent 0.4 percent (Sensex) and 6.7 and 0.8 per cent (Nifty) for the rest ofthe periods. The Dax has given 7.7 per cent, 4.7 per cent and 2.3 percent, Hang Seng 6 per cent, 2.6 per cent and minus 0.4 percent, FTSE 2.9, -2.2 and -1.4 per cent, and the Nikkei -0.3,1.8 per cent 4.9 per cent, making it the second best amongstall in the five-year period after the S&P 500 which returned awhopping 11 per cent to investors in a five-year investmenthorizon. When it comes to commodities as an asset class, whilesilver, gold and the industrial metals have given positivereturns on a 25-year CAGR basis, most of them are negative ona 10-year and a 5-year basis. Crude and aluminium are theworst hit among all the commodities. Similarly, in currencies, the yen, the pound and theeuro have done relatively better than their peers, butcompared to equities, the returns are still dismal. Real estate, another hot asset class, where investorsend up putting a huge chunk of money, is anotherdisappointment, says the report. Commodities also have been a big disappointment duringthis period. While silver returned 6.6, 6 and -12.7 per centin the 25, 10 and 5 year period respectively, gold’sperformance has been 5.4, 7.8 and -3.6 per cent, LME at 3.2.-4.8 and -12.9 per cent; Brent Crude 3.1, -5.5 and -18.3 percent; WTI crude at 2.6, -5.6 and -15.3 per cent, respectively. When it comes the currencies, it has not been anybetter with the yen’s returns being 1.2, 1.2 and -5.8 per centfor the 25, 10 and 5 year periods. The pound’s has been 1, 3.4 and 4.2 per cent, the euroat 0.3, 1.3 and 4.9 per cent; the yuan at -0.9, 1.8 and -0.6per cent; the rupee at -3.9, -3.7 and -8.7 per cent; theBrazilian real at -6.0, -4.1 and -16 per cent; South Africanrand at -6.5, -7.2 and -15.7 per cent and the Russian roublewas the worst with a return of -13.6 per cent, -9.4 per centand a whopping -19 per cent. Against this, the bonds have done better, with thePimco Total Return Fund growing at 5 per cent CAGR in 25years. PTI BEN NP MRABMSRE