Targeting equity returns with two-thirds MSCI World volatility and a
real return objective meets the investment objectives of many of our our clients for all market conditions.
Where multi-asset funds have gained the most traction, however, is in strategies meant to protect the value of retirement portfolio dollars against inflation, known as
real return or real asset funds.
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.
If you subtract the annual inflation rate over the same time period, roughly 3 percent, you arrive at the
real return -- approximately 7 percent annually.
For endowments and foundations, the
real return in April was -0.
7% per year, thus producing a
real return of close to 4.
There may or may not be higher levels ahead in this current bull market, but if inflation starts to emerge for any number of reasons particularly if a currency war erupts--then ignoring the power of a
real return measurement can lead to a real devaluation of one's assets.
Thomas Michaud says it offers students a
real return on their investment by boosting their careers.
Treasuries are likely to deliver less than a 1 percent
real return pre-tax over the next ten years, unless the U.
63% in order to make a
real return on their money once CPI inflation and tax are taken into account.
lt;span style="mso-spacerun: yes;"> </span>By investing in these commodities, investors were able to earn a decent
real return on their capital.
Investors are now seeing a positive
real return on their investments.
