IN FOCUS6-8 min read

10-year forecasts: what returns do we expect from major asset classes?

We have developed fresh forecasts for absolute returns across asset classes for the next ten years.

27/01/2020
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Read full report10-year return forecasts (2019-29)
12 pages423 KB

Authors

Riaz Fidahusein
Head of Multi-Asset Research & Analytics
Keith Wade
Chief Economist & Strategist

Our latest forecasts suggest that cash returns are likely to remain poor. We forecast the UK and US to deliver the highest cash returns, though even here the projection is for just 0.7% per annum (p.a.).

Turning to fixed income, we see the best developed market returns in the US where we forecast government bonds to return 1.9% p.a. Higher returns can potentially be found in emerging markets, where we see local currency sovereign bonds returning 5.2%.

We see global equities returning 5.7% p.a. and emerging market equities 8.5%. The more generous potential return of emerging markets would typically be expected to compensate for greater volatility and sharper drawdowns.

Finally, looking at alternatives, private equity offers the highest returns on our forecasts. 

The PDF below contains the full forecasts and information about the methodology used.  

Read full report10-year return forecasts (2019-29)
12 pages423 KB

Schroder Investment Management Limited - Dubai Branch is a DIFC Foreign Recognised Company. The DIFC Branch is duly authorized and regulated by the Dubai Financial Services Authority. The content of this material is not intended nor is it to be considered as financial advice and is only for the purpose of knowledge. This material has not been approved by any regulator/authority in the Middle East region. Accordingly, no regulator/authority has approved this information material or any other associated documents nor taken any steps to verify the information set out in this material and has no responsibility for it.

 

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Authors

Riaz Fidahusein
Head of Multi-Asset Research & Analytics
Keith Wade
Chief Economist & Strategist

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Issued by Schroder Investment Management Limited. Authorised and regulated by the Financial Conduct Authority.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

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Schroder Investment Management Limited – (Dubai Branch) is regulated by the Dubai Financial Services Authority (“DFSA”)