Let's examine what happened if $10,000 was invested at the start of the period, assuming that all investment income (ie dividends, net rent and interest) was reinvested back in each sector.  For comparison the Salary (AWOTE and AWE) Index starting from a base of $10,000, is also shown.

 The following chart plots the results for the first 20 years of the period.  During most of this period the investment performance was less than salary increases.

The following chart plots the results for the entire 37 year period.  During the latter part of this period the investment performance significantly exceeded salary increases.

The next table summarises the 37 year investment results: 

                                                   Source: Austmod historical returns before tax and fees 

** This is the average annual investment return in excess of salary increases (ie 10.76% less  8.12% equals 2.64%).   On a compound basis the actual real (salary-based) average investment return is 2.44% pa (ie 1.1076/1.0812 less 1 equals 2.44%).   A long term positive real investment return is critical for the funding of adequate retirement benefits.

Note that the annual returns for the Balanced Portfolio were negative 4 times in the 37 years (the return for the year ending 30 June 1973 was -0.3%).  More importantly, from a superannuation funding perspective, the annual returns for the Balanced Portfolio were less than Salary Increases 11 times in the 37 years.

Disclaimer:   This article is intended to be a factual analysis of past investment returns.  It is not intended, nor is it to be regarded, as investment/securities advice.  It does not take into account whether any particular investment or type of investment is suitable for your individual circumstances.  It is strongly recommended that you seek professional advice before making any investment choice or decision.