BACK TO KEEP CALM AND REMAIN DIVERSIFIED

A Review of Asset Class Performance


An asset class is a group of investments that have similar characteristics. Asset classes tend to behave in similar ways. For example, within equities, large companies tend to behave similarly. Each group is guided by similar rules and economic conditions, which makes them correlated. Correlation measures the degree to which asset classes are related—or are linked—together. There are a multitude of asset classes ranging from U.S. equities to real estate. No one knows which asset class will perform and history is certainly no guarantee, as you can see by the chart below. 

Most long-term investors agree that a diversified approach is a sound strategy for managing risk and returns in an uncertain world.

6
A Review of Asset Class Performance Over the Last 24 Years

1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020 YTD
US LC

37.6%

US SC

28.5%

Alts

21.5%

Div Port

20.3%

US HYB

19.2%

IG Bonds

18.5%

Munis

17.5%

REITs

12.2%

For Dev

11.4%

Intl SC

0.2%

EM

-5.2%

REITs

37.1%

US LC

23.0%

Alts

21.1%

US SC

16.5%

Div Port

12.1%

US HYB

11.4%

For Dev

6.9%

EM

6.0%

Munis

4.4%

IG Bonds

3.6%

Intl SC

2.2%

US LC

33.4%

US SC

22.4%

REITs

19.7%

Alts

13.4%

Div Port

13.4%

US HYB

12.8%

IG Bonds

9.7%

Munis

9.2%

For Dev

2.3%

EM

-11.6%

Intl SC

-18.7%

US LC

28.6%

For Dev

18.8%

IG Bonds

8.7%

Div Port

8.6%

Munis

6.5%

Intl SC

5.0%

Alts

2.6%

US HYB

1.9%

US SC

-2.6%

REITs

-17.0%

EM

-25.3%

EM

66.4%

Intl SC

32.7%

Alts

31.3%

For Dev

27.9%

US SC

21.3%

US LC

21.0%

Div Port

15.3%

US HYB

2.4%

IG Bonds

-0.8%

Munis

-2.1%

REITs

-2.6%

REITs

31.0%

Munis

11.7%

IG Bonds

11.6%

Alts

5.0%

Div Port

-0.3%

US SC

-3.0%

US HYB

-5.9%

US LC

-9.1%

For Dev

-13.4%

Intl SC

-18.1%

EM

-30.6%

REITs

12.4%

IG Bonds

8.4%

US HYB

5.3%

Munis

5.1%

Alts

4.6%

US SC

2.5%

Div Port

-1.2%

EM

-2.6%

US LC

-11.9%

Intl SC

-14.6%

For Dev

-21.4%

IG Bonds

10.3%

Munis

9.6%

REITs

3.6%

US HYB

-1.4%

Alts

-1.5%

Div Port

-5.1%

Intl SC

-5.7%

EM

-6.2%

For Dev

-15.8%

US SC

-20.5%

US LC

-22.1%

Intl SC

57.6%

EM

55.8%

US SC

47.3%

For Dev

39.4%

REITs

36.2%

US HYB

29.0%

US LC

28.7%

Div Port

25.8%

Alts

19.6%

Munis

5.3%

IG Bonds

4.1%

REITs

33.2%

Intl SC

29.3%

EM

25.6%

For Dev

20.4%

US SC

18.3%

Div Port

13.0%

US HYB

11.1%

US LC

10.9%

Alts

9.0%

Munis

4.5%

IG Bonds

4.3%

EM

34.0%

Intl SC

22.6%

For Dev

14.5%

REITs

13.8%

Alts

9.3%

Div Port

7.9%

US LC

4.9%

US SC

4.6%

Munis

3.5%

US HYB

2.7%

IG Bonds

2.4%

REITs

36.0%

EM

32.1%

Intl SC

26.9%

For Dev

25.7%

US SC

18.4%

US LC

15.8%

Div Port

15.1%

Alts

12.9%

US HYB

11.9%

Munis

4.8%

IG Bonds

4.3%

EM

39.4%

For Dev

12.4%

Intl SC

10.8%

Alts

10.0%

IG Bonds

7.0%

Div Port

6.7%

US LC

5.5%

Munis

3.4%

US HYB

1.9%

US SC

-1.6%

REITs

-17.6%

IG Bonds

5.2%

Munis

-2.5%

Alts

-19.0%

Div Port

-23.1%

US HYB

-26.2%

US SC

-33.8%

US LC

-37.0%

REITs

-39.2%

For Dev

-43.6%

Intl SC

-50.2%

EM

-53.3%

EM

78.5%

Intl SC

62.9%

US HYB

58.2%

For Dev

33.7%

REITs

28.5%

US SC

27.2%

US LC

26.5%

Div Port

26.2%

Alts

20.0%

Munis

12.9%

IG Bonds

5.9%

REITs

28.1%

US SC

26.9%

Intl SC

25.2%

EM

18.9%

US HYB

15.1%

US LC

15.1%

Div Port

13.6%

Alts

10.3%

For Dev

9.0%

IG Bonds

6.5%

Munis

2.4%

Munis

10.7%

REITs

9.4%

IG Bonds

7.8%

US HYB

5.0%

US LC

2.1%

Div Port

0.3%

US SC

-4.2%

Alts

-5.3%

For Dev

-12.2%

EM

-18.4%

Intl SC

-18.5%

Intl SC

18.5%

EM

18.2%

REITs

17.1%

US SC

16.4%

For Dev

16.4%

US LC

16.0%

US HYB

15.8%

Div Port

11.9%

Munis

6.8%

Alts

6.4%

IG Bonds

4.2%

US SC

38.8%

US LC

32.4%

For Dev

21.0%

Intl SC

19.7%

Div Port

13.5%

Alts

9.1%

US HYB

7.4%

REITs

1.2%

IG Bonds

-2.0%

EM

-2.6%

Munis

-2.6%

REITs

32.0%

US LC

13.7%

Munis

9.1%

Div Port

6.6%

IG Bonds

6.0%

US SC

4.9%

Alts

3.0%

US HYB

2.5%

EM

-2.2%

Intl SC

-4.0%

For Dev

-4.3%

REITs

4.5%

Munis

3.3%

Intl SC

2.6%

US LC

1.4%

IG Bonds

0.6%

Div Port

-0.8%

Alts

-1.1%

For Dev

-3.0%

US SC

-4.4%

US HYB

-4.5%

EM

-14.9%

US SC

21.3%

US HYB

17.1%

US LC

12.0%

EM

11.2%

Div Port

7.8%

REITs

6.7%

Alts

5.4%

Intl SC

3.9%

For Dev

2.8%

IG Bonds

2.7%

Munis

0.3%

EM

37.3%

Intl SC

31.7%

For Dev

24.2%

US LC

21.8%

US SC

14.7%

Div Port

14.0%

Alts

8.7%

US HYB

7.5%

Munis

5.5%

REITs

3.8%

IG Bonds

3.5%

Munis

1.3%

IG Bonds

0.0%

US HYB

-2.1%

REITs

-4.2%

US LC

-4.4%

Alts

-4.5%

Div Port

-5.5%

US SC

-11.0%

For Dev

-14.1%

EM

-14.6%

Intl SC

-18.2%

US LC

31.5%

US SC

25.5%

REITs

23.1%

For Dev

22.5%

Intl SC

22.4%

Div Port

18.5%

EM

18.4%

US HYB

14.3%

Alts

10.4%

IG Bonds

8.7%

Munis

7.5%

IG Bonds

3.1%

Munis

-0.6%

Alts

-8.3%

US HYB

-12.7%

Div Port

-13.5%

US LC

-19.6%

For Dev

-23.3%

EM

-23.6%

REITs

-28.5%

Intl SC

-29.0%

US SC

-30.6%

Diversified Portfolio Allocation: Investment Grade Bonds (IG Bonds): 30%, Municipals (Munis): 5%, U.S. High Yield Bonds (US HYB): 5%, U.S. Large Cap Equity: (US LC): 20%, U.S. Small Cap Equity (US SC): 10%, Foreign Developed Equity (For Dev): 10%, International Small Cap (Intl SC): 5%, Emerging Markets (EM): 5%, U.S. Real Estate (REITs): 5%, and Alternatives (Alts): 5%.

Source: Barclays, Bloomberg, Dow Jones, FactSet, MSCI Russell, Standard & Poor’s as of March 31, 2020. The indices are unmanaged, are not available for investment, and do not incur expenses. Click here for index definitions. The diversified portfolio is rebalanced to the original allocation annually.  The performance shown is not indicative of the performance of any mutual fund or other investment product. Past performance is no guarantee of future results.


Diversified Portfolio

The indices are unmanaged, are not available for investment, and do not incur expenses. Click here for representative indices and definitions


Investments in debt securities are subject to credit and interest rate risk. An increase in interest rates typically causes the value of bonds and other fixed income securities to fall.
Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.
Investments in small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity than investing in larger, more established companies.
Real estate investments are subject to factors such as changing general and local economic, financial, competitive and environmental conditions.
Alternative investments are speculative, subject to high return volatility and involve a high degree of risk including, but not limited to, the risks associated with leverage, derivative instruments such as options and futures, distressed securities, may be illiquid on a long term basis and short sales. There can be no assurance that these types of strategies will achieve their objectives or avoid substantial losses. Alternative investments may also be subject to significant fees and expenses.
Investments in emerging markets are subject to risks such as erratic earnings patterns, economic and political instability, changing exchange controls, limitations on repatriation of foreign capital and changes in local governmental attitudes toward private investment, possibly leading to nationalization or confiscation of investor assets.

AMG Distributors, Inc., a member of FINRA/SIPC.

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