Historical Asset Class Returns (PDF) - Invesco

[Pages:4]Historical Asset Class Returns

The following tables demonstrate the challenges investors face when attempting to predict the next top-performing asset class. Given the volatility in today's market, no one can know which one will be this year's success story. However, investors may reduce downside risk and increase upside potential by investing in a diversified group of asset classes based on individual risk tolerance and financial goals.

Best Performers

Fixed Income Asset Class Returns

2005

2006

2007

2008

Equity

Equity

Intl. Bond

Govt. Bond

4.91%

15.78%

11.03%

12.39%

2009

High Yield

58.21%

2010

High Yield

15.12%

2011

Municipal Bond

10.70%

2012 Equity

15.99%

2013 Equity

32.37%

2014 Equity

13.66%

Avg. Equity

9.49%

Senior Loan

4.40%

High Yield

11.85%

Govt. Bond

8.66%

Mortgage 8.52%

Senior Loan

40.99%

Equity 15.08%

Govt. Bond

9.02%

High Yield

15.81%

High Yield

7.44%

Municipal Bond

9.05%

High Yield

9.43%

Municipal Bond

3.51%

Intl. Bond

8.16%

Mortgage 6.96%

Short-Term Treasury

4.97%

Equity 26.47%

Senior Loan

9.49%

Corporate Bond

8.15%

Corporate Bond

9.82%

Senior Loan

5.36%

Corporate Bond

7.46%

Corporate Bond

5.72%

High Yield

2.74%

Senior Loan

6.44%

Short-Term Treasury

6.83%

Intl. Bond

4.40%

Corporate Bond

18.68%

Corporate Bond

9.00%

Mortgage 6.32%

Senior Loan

9.05%

Short-Term Treasury

0.64%

Mortgage 6.15%

Senior Loan

5.10%

Govt. Bond

2.65%

Mortgage 5.22%

Equity 5.49%

Municipal Bond

?2.47%

Municipal Bond

12.91%

Govt. Bond

5.52%

High Yield

4.98%

Municipal Bond

6.78%

Mortgage ?1.45%

Govt. Bond

4.92%

Municipal Bond

4.85%

Mortgage 2.61%

Municipal Bond

4.84%

Corporate Bond

4.56%

Corporate Bond

?4.94%

Intl. Bond

7.53%

Mortgage 5.50%

Intl. Bond

4.36%

Intl. Bond

4.09%

High Yield

?1.53%

High Yield

2.45%

Mortgage 4.82%

Short-Term Treasury

1.77%

Corporate Bond

4.30%

Municipal Bond

3.36%

High Yield

?26.16%

Mortgage 5.75%

Intl. Bond

4.94%

Equity 2.09%

Mortgage 2.60%

Municipal Bond

?2.55%

Short-Term Treasury

0.77%

Govt. Bond

4.39%

Corporate Bond

1.68%

Short-Term Treasury

4.25%

High Yield

1.87%

Senior Loan

-28.17%

Short-Term Short-Term Treasury Treasury

3.82%

2.80%

Senior Loan

1.61%

Govt. Bond

2.02%

Govt. Bond

?2.60%

Senior Loan

0.57%

Intl. Bond

2.97%

Worst Performers

Intl. Bond

Govt. Bond

Senior Loan

Equity

Govt. Bond

Municipal Short-Term Short-Term

Bond

Treasury Treasury

Intl. Bond

Intl. Bond

Short-Term Treasury

?8.65%

3.48%

1.26%

?36.99% ?2.20%

2.38%

1.59%

1.26%

?3.08%

?3.08%

2.87%

? Senior Loan -- Lipper Loan Participation Category Average ? Short-Term Treasury -- Barclays 1-3 Year Government/Credit Index ? High Yield -- Barclays U.S. Corporate High Yield Index ? Mortgage -- Barclays U.S. MBS Fixed Rate Index Source: Lipper Inc.

? Corporate Bond -- Barclays Corporate Investment Grade Index ? Government Bond -- Barclays U.S. Government Index ? Municipal Bond -- Barclays Municipal Bond Index ? International Bond -- Barclays Global Aggregate ex-U.S. Index ? Equity -- S&P 500 Index

The table depicts annual returns for eight Fixed Income asset classes and one equity benchmark over the past 10 years, ranked from best to worst each year. Each asset class is color coded for easy tracking. Well-known, industry-standard indexes are used as proxies for each asset class. This chart is for illustrative purposes and does not reflect the performance of any Invesco portfolio.

Best Performers

Equity Asset Class Returns

1995

1996

1997

Large-Cap Value

Real Estate

Large-Cap Value

38.36%

35.27%

35.18%

1998

Large-Cap Growth

38.71%

1999 Comm.

40.92%

2000 Comm.

49.74%

2001

Real Estate

13.93%

2002 Comm.

32.07%

2003

Small Caps

47.25%

2004

Real Estate

31.58%

2005 Comm.

25.55%

Large-Cap Growth

37.18%

Comm. 33.92%

Large-Cap Growth

30.49%

Intl. Equity

20.00%

Large-Cap Growth

33.16%

Real Estate

26.37%

Fixed Income

8.44%

Fixed Income

10.25%

Mid Caps

40.06%

Intl. Equity

20.25%

Intl. Equity

13.54%

Mid Caps

34.45%

Large-Cap Growth

23.12%

Mid Caps

29.01%

Large-Cap Value

15.63%

Intl. Equity

26.96%

Fixed Income

11.63%

Small Caps

2.49%

Real Estate

3.82%

Intl. Equity

38.59%

Mid Caps

20.22%

Mid Caps

12.65%

Small Caps

28.45%

Large-Cap Value

21.64%

Small Caps

22.36%

Mid Caps

10.09%

Small Caps

21.26%

Mid Caps

8.25%

Large-Cap Value

?5.59%

Large-Cap Value

?15.52%

Real Estate

37.13%

Small Caps

18.33%

Real Estate

12.16%

Comm. 20.33%

Mid Caps

19.00%

Real Estate

20.26%

Fixed Income

8.69%

Mid Caps

18.23%

Large-Cap Value

7.01%

Mid Caps

?5.62%

Intl. Equity

?15.94%

Large-Cap Value

30.03%

Comm. 17.28%

Large-Cap Value

7.05%

Fixed Income

18.47%

Small Caps

16.49%

Fixed Income

9.65%

Small Caps

?2.55%

Large-Cap Value

7.35%

Small Caps

?3.02%

Large-Cap Growth

?20.42%

Mid Caps

?16.19%

Large-Cap Growth

29.75%

Large-Cap Value

16.49%

Large-Cap Growth

5.26%

Real Estate

15.27%

Intl. Equity

6.05%

Intl. Equity

1.78%

Real Estate

?17.50%

Fixed Income

?0.82%

Intl. Equity

?14.17%

Intl. Equity

?21.44%

Small Caps

?20.48%

Comm. 20.72%

Large-Cap Growth

6.30%

Small Caps

4.55%

Worst Performers

Intl. Equity

Fixed Income

Comm.

Comm.

11.21%

3.63%

?14.07% ?35.75%

? Large-Cap Growth -- Russell 1000 Growth Index ? Large-Cap Value -- Russell 1000 Value Index ? Mid Caps -- Russell Midcap Index ? Small Caps -- Russell 2000 Index Sources: Invesco, Lipper Inc.

Real Estate

Large-Cap Growth

Comm.

Large-Cap Growth

Fixed Income

?4.62%

?22.42% ?31.93% ?27.88%

4.10%

? International Equity -- MSCI EAFE Index ? Real Estate -- FTSE NAREIT All Equity Index ? Commodities -- S&P GSCI Index ? Fixed Income -- Barclays U.S. Aggregate Index

Fixed Income

4.34%

Fixed Income

2.43%

2006

Real Estate

35.06%

2007 Comm.

32.67%

2008

Fixed Income

5.24%

2009

Mid Caps

40.48%

2010

Real Estate

27.95%

2011

Real Estate

8.28%

2012

Real Estate

19.70%

2013

Large-Cap Growth

38.82%

2014

Real Estate

28.03%

Avg.

Mid Caps

13.96%

Intl. Equity

26.34%

Large-Cap Growth

11.81%

Small Caps

?33.79%

Large-Cap Growth

37.21%

Large-Cap Growth

26.85%

Mid Caps

7.84%

Intl. Equity

17.51%

Large-Cap Value

34.76%

Large-Cap Value

13.45%

Real Estate

13.51%

Large-Cap Value

22.25%

Intl. Equity

11.17%

Large-Cap Value

?36.85%

Intl. Equity

31.78%

Large-Cap Value

25.48%

Small Caps

2.64%

Comm. 17.32%

Small Caps

33.48%

Mid Caps

13.22%

Large-Cap Value

12.10%

Small Caps

18.37%

Fixed Income

6.97%

Real Estate

?37.73%

Real Estate

27.99%

Small Caps

16.71%

Intl. Equity

0.39%

Large-Cap Value

17.28%

Intl. Equity

32.53%

Large-Cap Growth

13.05%

Large-Cap Growth

11.70%

Mid Caps

15.26%

Mid Caps

5.60%

Large-Cap Growth

?38.44%

Small Caps

27.17%

Intl. Equity

15.51%

Fixed Income

-1.18%

Large-Cap Growth

16.35%

Comm. 22.78%

Fixed Income

5.97%

Small Caps

11.40%

Large-Cap Growth

9.07%

Large-Cap Value

?0.17%

Mid Caps

?41.46%

Large-Cap Value

19.69%

Fixed Income

9.03%

Large-Cap Value

-1.55%

Small Caps

15.26%

Real Estate

2.86%

Small Caps

4.89%

Intl. Equity

7.18%

Fixed Income

4.33%

Small Caps

?1.57%

Intl. Equity

?43.38%

Comm. 13.48%

Comm. 7.75%

Large-Cap Growth

-4.18%

Mid Caps

4.22%

Fixed Income

?1.22%

Intl. Equity

-4.90%

Fixed Income

6.29%

Comm. ?15.09%

Real Estate

?15.69%

Comm. ?46.49%

Fixed Income

5.93%

Mid Caps

6.54%

Comm. -12.14%

Fixed Income

0.08%

Mid Caps

?2.02%

Comm. -33.06%

Comm. 5.85%

The table depicts annual returns for seven equity asset classes and one Fixed Income benchmark over the past 20 years, ranked from best to worst each year. Each asset class is color coded for easy tracking. Well-known, industry-standard indexes are used as proxies for each asset class. This chart is for illustrative purposes and does not reflect the performance of any Invesco portfolio.

About risk

Prices of equity securities change in response to many factors, including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Fixed Income investments have interest rate risk, which refers to the risk that bond prices generally fall as interest rates rise and vice versa.

Foreign securities have additional risks, including exchange rate changes, political and economic upheaval, relative lack of information, relatively low market liquidity, and the potential lack of strict financial and accounting controls and standards.

Investing in smaller companies involves risks not associated with investing in more established companies, such as business risk, stock price fluctuations and illiquidity.

Investments in narrow sectors such as real estate or commodities my be subject to more volatility than more diversified investments.

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We're committed to giving you the expert insights you need to make informed investing decisions, and we are well-equipped to provide high-quality support for investors and advisors.

Invesco Advisers, Inc. is an investment advisor; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products. Both are indirect, wholly owned subsidiaries of Invesco Ltd.

Past performance cannot guarantee future results. Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss. The Russell 1000? Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000? Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell Midcap? Index is an unmanaged index considered representative of mid-cap stocks. The Russell 2000? Index is an unmanaged index considered representative of small-cap stocks. The MSCI EAFE? Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The FTSE NAREIT All Equity REITs Index is an unmanaged index considered representative of U.S. REITs. The S&P GSCI Index is an unmanaged world production-weighted index composed of the principal physical commodities that are the subject of active, liquid futures markets. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. The Barclays 1?3 Year Government/Credit Index is an unmanaged index considered representative of short-term U.S. corporate and government bonds with maturities from one to three years. The Barclays U.S. Corporate High Yield Index is an unmanaged index that covers the universe of fixed-rate, noninvestment-grade debt. The Barclays U.S. MBS Fixed Rate Index is an unmanaged index comprising 15- and 30-year fixed-rate securities backed by mortgage pools of Ginnie Mae, Freddie Mac and Fannie Mae. The Barclays Corporate Investment Grade Index is an unmanaged index considered representative of fixed-rate, investment-grade taxable bond debt. The Barclays U.S. Government Index is an unmanaged index considered representative of Fixed Income obligations issued by the U.S. Treasury, government agencies and quasi-federal corporations. The Barclays Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market. The Barclays Global Aggregate ex-U.S. Index is an unmanaged index considered representative of bonds of foreign countries. The S&P 500? Index is an unmanaged index considered representative of the U.S. stock market. The Lipper Loan Participation Category Average Index is an unmanaged index considered representative of an average of all of the funds in the Lipper Loan Participation Funds category. The Russell 1000 Growth Index, Russell 1000 Value Index, Russell Midcap Index and Russell 2000 Index are trademarks/service marks of the Frank Russell Co. Russell? is a trademark of the Frank Russell Co. Index performance reflects reinvestment of dividends but does not reflect any fees, expenses, or sales charges. An investment cannot be made directly in an index.

HAR-BRO-1 02/15

Invesco Distributors, Inc.

Invesco Advisers, Inc.

US2151

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