Medium-Term Asset Allocation Views
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What to expect in the next 5 to 7 years?
Institutional investors face great challenges after a prolonged period of declining yields and very accommodative monetary policy by the main central banks. These include the continuous search for yield as the more traditional fixedincome asset classes are expected to generate low returns. Also the growing pressure of regulation has impacted the management of portfolios, especially when derivatives are involved. The emergence of more sophisticated investment vehicles can bring additional benefits from a risk perspective, but also require a more thorough understanding before implementation.