RATE OF RETURN

Finding the best return in a low-return world

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 17-May-16

Research by Societe Generale’s global asset allocation strategy team has concluded that investors can expect an annualised total return of 5-7 per cent from the majority of developed equity markets in the medium- to long-term. The research also suggests that emerging market equities and bonds are likely to deliver the best returns, with Societe Generale preferring bonds issued by India. However, the group says Australian investors should favour shares rather than bonds.

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SOCIETE GENERALE SA

Vanguard sees lower returns

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Original article by Sally Patten
The Australian Financial Review – Page: 8 : 11-Mar-16

Vanguard Group CEO and chairman Bill McNabb is bearish about the outlook for global investment returns over the next decade. He expects returns to be around two per cent below the long-term average over this period, although he anticipates a subsequent upturn. Meanwhile, McNabb says there should be greater transparency regarding Australian superannuation funds’, while he argues that consolidation in the industry could also be used to put downward pressure on fees.

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THE VANGUARD GROUP INCORPORATED

Pimco forecasts slow year but no recession

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 5-Feb-16

Mihir Worah and Geraldine Sundstrom of Pimco believe that the seven-year bull run is over and volatility will be a characteristic of financial markets in 2016. They also warn that investors can expect a period of lower returns, while the crude oil price is forecast to reach $US50 per barrel by the end of the year. Meanwhile, Pimco forecasts that the global inflation rate will rise to between 1.75 per cent and 2.25 per cent, although it has downplayed the prospect of a recession.

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PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, UNITED STATES. FEDERAL RESERVE BOARD

Australia languishes in bottom five

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Global asset managers are bearish about the outlook for returns from Australian shares over the next three years, according to a report commissioned by Principal Global Investors. The report’s author, Amin Rajan, says the survey shows that markets in Russia, Australia, Latin America, Canada and Eastern Europe will deliver the worst returns over this period, while the best returns will be achieved by the US, India, Japan, so-called frontier markets and Asia.

CORPORATES
PRINCIPAL GLOBAL INVESTORS, UNITED STATES. FEDERAL RESERVE BOARD