Australian real estate investment trusts (A-REITs) returned 32.8 per cent over the year to 31 December 2012, outperforming all other growth in Russell Investments' latest risk versus return analysis.
The results make up for losses experienced in 2011 (-1.6 per cent) and 2010 (-0.7 per cent), but the report underlined the importance of having a well-diversified portfolio in a long-term growth strategy.
While Australian equities and global shares also delivered strong results, with both asset classes hitting nearly 20 per cent in positive returns, the 'safe haven' of cash only produced a 4 per cent return.
Similarly, Australian bonds only managed a 7.7 per cent return, while international bonds were slightly higher at 9.7 per cent.
"The risk-on, risk-off volatility is likely to continue in the foreseeable future, and the risk versus return analysis demonstrates the value of diversification, particularly in this environment," Russell Investments director of client investment strategies Scott Fletcher said.
