You are here: Home - Saving & Banking - News -

Investors urged to diversify

0
Written by:
14/02/2008

Commodities were the best performing asset class in 2007, according to Clerical Medical.

Research from the pensions and investment provider showed returns from commodities rose by 20.6% last year, boosted by a 77.5% increase in the price of soyabeans as well as a strong performance from precious metals (26.4%), such as platinum (37.2%).

However, Clerical Medical said portfolio diversification was key as the majority of asset classes saw returns of below the long-term average in 2007. Shares underperformed both domestically (5.3%) and internationally (5.2%), delivering their lowest returns in five years. Commercial property saw its weakest returns (-5.5%) in 15 years.

Looking back over the last decade, though, residential has provided the best returns out of all the asset classes, averaging 17.8% per year since 1997. Commercial property was the next best performer (11.4% per year), but international bonds provided investors with the worst returns over the long term, averaging 4.4% per year.

Martin Ellis, chief economist at HBOS, said: “Recent market performance highlights the benefits of portfolio diversification.

“Given the recent financial market turmoil, UK and international shares provided subdued returns in 2007, while UK residential property continued to be one of the best performers.”

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Financial resolutions have staying power

Financial new year’s resolutions lasted longer than non-financial ones this year, according to new research.

Close