Long Term Stats

Figure 11 shows an index of accumulated real return on index-linked stocks at the end of each quarter from June 1981 to December 2007. The index used is the FTSE Actuaries Government Securities Index-linked Index (All Stocks, assuming 5 per cent inflation). The accumulated money return allows for gross interest income and for changes in the capital values of stocks. The real return is obtained by dividing index-linked returns by the price index shown in Figure 2.

Figure 12 gives the percentage returns on index-linked investments over periods of one, five, 10 and 20 years, ending in December each year from 1986 to 2007. On the left are shown percentage rates of nominal return, and on the right are shown percentage rates of real return, relative to retail prices.