Achieving real returns in a low growth world

The idea that we have entered a “low return” world is now consensus. The arguments are based on a combination of fundamental macro factors (a low growth world) and extended structural valuations in equity and debt markets, suggesting significant return headwinds. Consistently achieving solid real returns in this environment will be challenging. That said, we believe CPI+5% pa over the medium term is still an appropriate and achievable return objective. This view is based on several key ideas: 1) Valuation challenges across asset markets are not uniform 2) Markets rarely move in straight lines and volatility should provide opportunity 3) Active management will play a critical role in capturing upside but more importantly in avoiding losses. This article provides our view on the return outlook across different asset classes and draws seven key implications for investors seeking a 5% real return over the medium term. (VIEW LINK)

2 topics

Schroders Australia

Established in 1961, Schroders in Australia is a wholly owned subsidiary of UK-listed Schroders plc. Based in Sydney, the business manages assets for institutional and wholesale clients across Australian equities, fixed income and multi-asset and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment