With interest rates arguably at their lowest levels in 5000 years amid weak economic growth, investors and policymakers are questioning whether the long-term, natural rate of interest will be persistently low and constrain returns across asset classes. Saker Nusseibeh, Chief Executive, and Eoin Murray, Head of Investments at Hermes Investment Management, take a closer in look in their white paper, Breaking with (un)convention - asset allocation for a future with lower market returns, and believe that this has profound implications for institutional investors with long time horizons.
Institutional investors’ current and future decisions about which asset classes they should favour, and the methods of implementation, will be pivotal. Nusseibeh and Murray argue that long-term investors will need to make a radical response.
To read the paper in full, please click here http://bit.ly/2cpdhzr
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