Markets with Madison: Best and worst assets of the decade

Private equity has proved the place for investors to be, while commodities have failed to provide any upside, according to a ranking of asset class returns over the past decade by KiwiSaver provider Mercer.

Global private equity returned 16.4 per cent on average in the 10 years to 2022, which was earned from locking sums of money directly in private equity funds with a longer-term view, or investing in private equity firms such as Warren Buffett’s Berkshire Hathaway.

“It’s increasingly becoming a big part of the institutional investment universe,” Mercer chief investment officer Padraig Brown told Markets with Madison.

New Zealand equities came in second place, which Brown called an “anomaly”, likely due to investors chasing income from our high dividend-yielding stocks.

On the bottom end, commodities - a mix of oil and metals like gold - was the only negative returning asset over the decade.

Other assets typically deemed safe havens, such as Government bonds and cash, were poor performers too.

The best and worst-performing assets of the past decade are revealed in today’s episode of Markets with Madison.

Get investment analysis and insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.