asset returns

How to find the right discount rate in a world of bottoming bond yields

Clime Asset Management

We believe that bond yields have finally bottomed. As they begin to increase gradually, investors can expect a higher ‘risk-free’ return from longer term government bonds. This, in turn, should see a jump in the required returns from other riskier asset classes such as equities, placing pressure on current valuations.... Show More

The constrained medium term return outlook

AMP Capital

In getting a handle on potential medium-term returns from an asset class, the key is its starting point valuation. For example, if current yields – say bond yields and dividend yields – are lower than “normal,” this will likely constrain returns relative to the past. Our approach to assessing medium-term... Show More

macroeconomics asset returns

Major asset return and risk forecasts

Schroders Australia

We see value in cash and have been building cash across our portfolios. The rationale is that we think it’s a sensible place to be invested, not for the long term, but as a store of value as issues in other assets resolve themselves. The chart below highlights our three-year... Show More

asset allocation asset returns