UK equity returns begin to mirror cash and gilts

performance

asset classes closer together with about 2% per year difference over 20 years

The long-term returns from gilts and cash are edging ever closer to those of UK equities, with about 2% per year difference between them over 20 years. In looking at returns, pension consultants Hewitt Bacon & Woodrow found 20-year annualised returns for UK equities sat at 12.3% per year at the end of 2003, while long gilts provided per year returns of 10.5% and cash 8.2%. The figures are not adjusted for inflation. The 49th annual Barclays Capital Gilt Equity study released in March shows a similar result. According to its data 20-year real returns from equities are 8% per year, while ...