The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

HSBC Private Bank - Growth

Profile assumed:

UK resident and domiciled

Seeking a capital preservation strategy for $20m

If one considers a long enough period, studies show that equities consistently outperform all other asset classes. Indeed the 2004 CSFB Equity Gilt Study shows that £100 invested in equities in 1869 would now be worth £14.9m in nominal terms. Adjusted for inflation it would be worth a still impressive £332k. By comparison £100 invested in gilts or cash would each have been worth about £45k nominal and only just over £1,000 inflation adjusted. This would appear to make a heavy preponderance of equities in a portfolio a key component if seeking growth over the long term.

The picture over a shorter period can look very different. The same study shows that over the ten years 1993 ? 2003, returns on equities and on cash were almost the same with cash at 5.7% and equities at 5.9% nominal, or a little over 3% in real terms. The reasons will be well known to any market-watcher. After a strong run in the latter part of the 1990s, fuelled by the tech/internet stock boom, the FTSE 100 fell from a high of just shy of 7,000 at the end of 1999 to below 3,300 by March 2003.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree