Investing in assets like equities, bonds and commercial property has proven to be the best way to grow capital and protect it from inflation over the long term, despite short term market fluctuations. Historical data from 1987-2015 shows that these assets consistently outperformed cash savings, even after accounting for inflation and various market crises like the Asian currency crisis, dot-com bubble bursting, and global financial crisis. Only cash deposits with banks can guarantee the security of invested capital.

1. Why investing makes sense
Despite the short term fluctuations caused by market disruptions, history shows that investing in assets such as equities,
bonds and commercial property has proved the best way to grow capital and protect it from inflation over the long term.
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I N V E STM E N T S
Source: Bloomberg/Financial Express. Data from 1 January 1987 to 31 December 2015. All figures are calculated on a total return basis which includes the reinvestment of income. Equities are represented by the FTSE All Share Index. Bonds are represented by the FTSE Gilts All Stocks Index. Cash is represented by the Moneyfacts
Instant Access £100K Account. Property is represented by the IPD UK All Property Index. Inflation is measured by the Retail Prices Index. Only cash deposited with a bank or building society can provide the security of the capital invested. Please be aware that past performance is not indicative of future performance.
Source: FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors.
Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in the UK represent St. James’s Place Wealth Management plc, which is authorised and regulated by the Financial Conduct Authority.
St. James’s Place Wealth Management plc Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 4113955.
£1,190,150
£1,287,381
£925,831
£329,238
£262,463
£1,000,000
£1,100,000
£1,200,000
£900,000
£800,000
£700,000
£600,000
£500,000
£400,000
£300,000
Black Monday
1987
First Gulf War
1990
ERM crisis
1992
Asian currency
crisis 1997
LTCM failure
1998
September 11th
2001
Invasion of
Iraq 2003
Subprime loan
problems emerge 2007
European sovereign
debt crisis 2010
Lehman Brothers
collapses 2008
Dot com peak
2000
£200,000
£100,000
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Equities 8.4% 11.5% 36.1% -9.7% 20.8% 20.5% 28.4% -5.8% 23.9% 16.7% 23.6% 13.8% 24.2% -5.9% -13.3% -22.7% 20.9% 12.8% 22.0% 16.8% 5.3% -29.9% 30.1% 14.5% -3.9% 12.2% 20.8% 1.2% 1.0%
Property 15.0% 30.4% 19.3% -5.5% -1.8% 0.2% 12.2% 19.1% 3.2% 8.4% 15.0% 13.0% 13.5% 11.3% 6.9% 10.3% 10.7% 18.1% 18.0% 19.5% -0.3% -21.3% -6.6% 17.6% 7.6% 2.4% 10.9% 19.3% 13.8%
Bonds 15.3% 6.8% 8.2% 9.6% 16.2% 18.7% 21.0% -6.3% 16.4% 7.3% 14.1% 18.9% -0.9% 8.8% 3.0% 9.3% 2.1% 6.6% 7.9% 0.7% 5.3% 12.8% -1.2% 7.2% 14.8% 2.5% -3.9% 13.9% 0.2%
Cash 10.7% 9.6% 11.9% 13.7% 10.9% 8.6% 5.4% 4.8% 5.0% 3.5% 3.6% 4.3% 2.4% 2.4% 1.8% 1.1% 0.9% 2.7% 3.4% 3.4% 4.2% 3.8% 0.9% 0.8% 0.9% 0.9% 0.7% 0.7% 0.7%
Inflation 4.1% 6.4% 7.7% 9.7% 4.3% 3.0% 1.4% 2.6% 3.1% 2.7% 3.7% 3.0% 1.4% 3.2% 0.9% 2.6% 2.5% 3.4% 2.4% 3.9% 4.3% 3.0% 0.3% 4.7% 5.2% 3.1% 2.7% 1.6% 1.2%
US loses its ‘AAA’
credit rating 2011
China
Slowdown 2015