Fixed Assets

A Case For Multi-Asset Investing: The Low Return Imperative

How big is the gap between what we expect the markets to deliver and what investors need? What should be done with the investment portfolio to close this gap?

One of the primary reasons to consider a multi-asset investment approach is the “low return imperative.” That is, if returns from capital markets are likely to be lower going forward than they have been in the past, it is “imperative” that investors seek additional sources of return to improve the probability of achieving their objectives.

This Viewpoint explores the case for multi-asset investing by calculating required return or “hurdle rates” for defined benefit, non-profit, and individual/defined contribution investors and discusses why it is critical to consider all potential additional sources of return, including those that we believe are only available through a multi-asset approach.