Robeco, the well known Dutch asset manager, published their expected returns for 2020-2024.
Given that returns on nearly all assets are pushed lower as the main benchmark, 10 year German govt bond yields, keep drifting lower, it’s no surprise to see some very conservative expected returns. Developed market equities 3.25% EUR return, emerging markets 3.75% EUR return. It’s pretty interesting to read this while knowing that the Dutch government is considering taxing these 3.25% returns with 1.75% asset tax. (see my article on the spaar belasting change) All this means very very tough times ahead for any asset manager serving retail investors’ non pension savings.