Andrew Perrins is CEO and co-founder of Savvy Investor, a professional network for institutional investors that curates pension and investment research and white papers from around the web. After qualifying as an actuary in 1987, Perrins worked as director of global asset allocation for Abbey Life and Chase Manhattan Bank.
Why bother with long-term return expectations? For asset owners or asset managers compiling a strategic asset allocation, long-term forecasts are relevant and necessary. When combined with estimates for risk and correlation, these forecasts allow investors to fine-tune their long-term benchmarks and consider trade-offs between asset classes to enhance the implied risk and return profile of the fund.