The excellent study published yesterday by the McKinsey Global Institute is clear: "The forces that have driven exceptional investment returns over the past 30 years are weakening, and even reversing. It may be time for investors to lower their expectations.”
We agree. Low returns are here to stay, and implications for investors are both real and pressing. As Darwin would say, only those who adapt will last. It is time for investors to ensure their approach allows them to adapt to this new, enduring reality.
The table below makes this clear.
For many, this requires re-thinking their model and re-tooling their business in order to improve performance relative to decelerating benchmarks, reduce costs and increase transparency.
A low-return environment further strengthens the case for methodical investing based on thoughtful diversification, rigorous allocation and systematic risk control. It also demands increased transparency for every aspect of the investment process, from all types of costs to detailed performance attribution.
Built by professionals for professionals & sophisticated investors using cutting-edge technology, our platform is designed to help our clients achieve these goals while offering the choice and flexibility required to meet specific requirements and market views.
Please contact us to find out more about our services and platform.