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.