A decade ahead: Where to source strong returns by 2035

InvestorDaily

Schroders has issued updated long-term forecasts highlighting where it believes the best return prospects sit over the next 10 years across regions and asset classes. Schroders has highlighted a wide divergence in expected returns across global markets over the coming decade, releasing its 2026–2035 capital market forecasts that show substantial variation between regions, sectors and asset classes. The projections, updated twice yearly, underpin the firm’s strategic asset allocation modelling and offer a detailed view of how different parts of the market may perform over a 10-year horizon.

The analysis pointed to a low but steady profile for cash returns, with annual forecasts of 2.6 per cent in the US, 1.7 per cent in Europe, 3.4 per cent in the UK and 1.2 per cent in Japan. These estimates were derived using government bond yields and term premiums calculated from yield curve data since 2000. Government bond expectations also varied, guided by the long-established relationship between starting yields and subsequent 10-year returns.

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