M&G Talks: Enhancing prospective returns in a low return environment

Despite being in the midst of one of the most challenging economic periods in history we have actually witnessed three exceptional decades for the traditional long-only 60/40 balanced fund.

 

Equities and bonds have enjoyed stunning bull markets and, over the last 25 years, have provided negative correlation during equity bear markets. The result has been a staggering return for this type of ‘naïve’ strategy: Looking ahead, however, the journey looks a lot tougher and we are looking at the lowest prospective yield on a 60/40 equity/bond portfolio that we have seen in the past 40 years.

 

That is a sobering thought for future returns and is an environment which will require investors to expect more dynamic and tactical investing in order to be able to deliver returns.

 

We invite you on 16 July at 10:00 BST to a conversation with Jonathan Willcocks and Steven Andrew as they discuss their outlook for Multi Asset Investing in this challenging environment.