The medium term investment return outlook remains constrained

Shane Oliver, Head of Investment Strategy and Chief Economist.

The following note looks at the medium term investment return outlook which remains constrained.

The key points are as follow:

  • A further fall in investment yields across most major asset classes points to a constrained medium term return outlook. For a diversified mix of assets, this has now fallen to around 6.5% on our projections.
  • For investors the key remains to: have realistic return expectations; allow that inflation is also low so real returns aren’t down as much; focus on asset allocation and focus on assets with decent & sustainable income.

Read more