real return

Real return

The actual payback on an investment after removing the effect of inflation.

Real Rate of Return

The rate of return on an investment after adjusting for inflation. It is calculated simply by taking the gross return and subtracting the inflation rate. For example, if the return on an investment is 7% and the inflation rate is 4%, the real rate of return is 3%.

real return

The inflation-adjusted rate of return on an investment. If an investor earns a return of 12% during a year when inflation is 4%, the real return is 8%. Compare nominal return.
References in periodicals archive ?
Using the median figure is far more indicative of the real return owners can expect.
Inflation falling from 2.1% to 1.8%, as confirmed yesterday, is good news for long-suffering savers who now have the chance to earn a real return on their cash - something that has been very difficult over the past few years.
INFLATION falling from 2.1 per cent to 1.8 per cent, as confirmed yesterday, is good news for long-suffering savers, who now have the chance to earn a real return on their cash - something that has been very difficult over the past few years.
Summary: Buying when P/E ratios fall over 10% over previous year provide a 9.6% real return
Blue Sky Asset Management LLC on Thursday revealed that the QuantX Risk Managed Real Return ETF (CBOE:QXRR) and QuantX Multi-Asset Income ETF (CBOE:QXMI) will close after a review of market demand.
Chaired by Philip Nell, head of real return funds in the UK at LaSalle, the panel included Tim Legge from Tritax, Tom Goodwin from Aviva Investors, Justin Upton from M&G Real Estate, and Andrew Berger-North from Hammerson.
Some financial experts however have reservations about it asserting that 'the real return on housing probably has been less than on equities but agree that it has been more than the yield from government bonds'.
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.
United would look to bank PS60million, should Real return to test their resolve to keep the 26-year-old at Old Trafford.
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.
Eng Basim bin Ali Al Nassri, director general of marketing and media at PEIE, noted that the study has been carried out to evaluate the real return to the subscribers in Origin Oman Campaign through focusing on certain tools.
A 30-year-old who can expect to receive a 4.5% real return rather than the 6.5% real return on a standard 60/40 portfolio over the next 20 years would see $100 invested grow to only $160-$200.