RISING living costs are making it even tougher to get real returns
The Real Capital Builder strategy is relevant for a broad range of investors looking for positive real returns
via equities, but in a fund where the drawdown risk and volatility of equities are actively managed down.
The concept of seeking real returns
is fairly new, so funds have relatively short track records; moreover, inflation has been quiet lately, so their portfolio designs have not faced a severe test.
Western European equity returns for the last 30 years also exceeded the 100-year and 50-year averages, while fixed-income investments, as measured by total real returns
on government bonds, were also considerably higher in the U.
But investors often make the mistake of concentrating on nominal rather than real returns
(that is ignoring the effects of inflation), and, if inflation is set to remain low, which seems to be so, shares yielding between three and four per cent with dividend growth as low as three per cent offer a potential total real return
of four to five per cent, which is still pretty attractive.
Public defined benefit plans met their target returns, while endowments and foundations posted negative real returns
, ISSG said.
Experts expressed concern that Government policies have driven some hard-pressed households to give up trying to save for a rainy day as they continue to grapple with high living costs and poor interest rates which fail to give them any real returns
matter if you are genuine about truly funding a secure retirement, that future dream home, or a world cruise with your best friends.
Our estimates of the most probable pre-tax real returns
for a constant maturity ten-year Treasury note over the next ten years range from ten to 100 basis points, depending on how quickly real yields return to long-term equilibrium levels of 230 basis points.
In a word, infrastructure investments could offer investors real returns
, long duration, and genuine portfolio diversification, making them a great fit for investors' long-dated, real liabilities.
4 percentage points higher future real returns
than those who were shown the 4.
Sections III, IV and V, discuss nominal returns, real returns
, and U.