For only the second time in 10 years, international and UK shares were the top performing asset classes, with returns of 22.1% and 18.4% respectively for the year ending June 2007.
Clerical Medical research showed for the third successive year the UK stock market has outperformed the housing sector, which only grew 11.5%.
Overall performance over the past ten years was the opposite, with UK house prices rising an average 11.2% per annum, exceeding the 7.6% per annum UK share return.
Bond prices have suffered over the past year; rising interest rates caused a 0.3% fall. This is the first time UK stocks outperformed bonds since June 2003.
Cash bucked the 10-year trend of underperforming to bonds, returning 5.2%.
Looking at five-year performance, precious metals took the crown as best asset class. Its 18.6% per annum returns has been somewhat tempered by a more modest result in the year to June 2007, just 7.6%. However, it was a different story in the year to June 2006 when precious metals returns hit 45.5%.
Over the past 10 years, commercial property has been the strongest asset class, returning an average 13.4% per annum.
While on average UK stocks have returned 7.6% a year, UK bonds rose 6.5% and holding cash was up 5.3%.
Clerical Medical group economist Tim Crawford says shares have performed well as strength in the local and global economies boosted earnings.
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