Summary: Over the past 20 years, Australian shares and residential property have been the standout asset classes, with returns well ahead of inflation. In terms of tax leakage, returns from Australian shares actually increase after tax due to franking credits, while a number of other asset classes have some tax efficiency, such as Australian residential property, international shares and Australian listed property. Over long time frames, returns from international shares are looking reasonable.
Key take-out: Over the last two decades patient investors have received reasonable returns, despite the Global Financial Crisis and dot com crash.
Key beneficiaries: General investors. Category: Investment portfolio construction.