Change your thinking on returns, urges Newton
Lower returns and greater asset price volatility await investors in the foreseeable future according to a paper on returns from BNY Mellon manager Newton.
In the paper titled ‘A perspective on real returns‘ the manager looks at the effects on investors of the ongoing deleveraging of developed markets, and the implications for returns from various asset classes.
Along with increased volatility becoming the new norm for investors, Newton suggests that historical correlations are unravelling, leading to a challenge for those who hedging or diversifying on the basis of past assumptions.
Key solutions in this new environment will be strategies focused on real returns, income, and unconstrained approaches that give active managers more flexibility in their work, Netwon said.
To read the full paper click here:A perspective on returns