
21 Oct Expect slower medium-term returns
Key Points:
- The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa.
- At least it’s still better than sub 1% bank deposit returns.
- The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets with decent and sustainable income.