Return forecasts across equities have significantly increased from last year’s forecasts, according to a report by DWS Research Institute. In Europe and emerging markets, they are now in line with or modestly above the realized returns over the past decade, whereas US equities are still below the strong realized returns seen over the past 10 years, the report shows.
Across regional equity markets, emerging markets are expected to offer the highest forecasted returns, but only marginally ahead of some European markets and the US, the report states.
Fixed income return forecasts show the most positive change, both versus the previous year’s forecasts and relative to the previous decade, the report adds. Both core fixed income and credit offer higher nominal return outlooks, given high current starting yield levels, the report reveals.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.