DWS Long View: 10Y return expectations for the Green Decade

Long-term investors face several major challenges. High-risk investments such as equities or corporate bonds have reached levels that significantly limit long-term return potential. Another limiting factor: the low growth potential of many economies. In addition, the growth we have seen since the 1950s has been very much at the expense of natural resources – this path is not sustainable. In this context, we present our new long-term (10Y) return forecasts across asset classes, a basic building block for strategic asset allocation – and for the first time this includes a comparison of ESG and traditional investments. On the equity side, we find moderately higher return potential for ESG investments in most regions. Another key result is the rising importance of Alternative asset classes – in an environment of declining return potential across most asset classes, a narrow asset allocation involving only equities and fixed income becomes ever more challenging. Presenters: _Francesco Curto (Global Head of Research, DWS) _Toby Dudley-Smith (Head of Passive Sales, UK, Ireland & Channel Islands) _Dirk Schlueter (Head of Data Science, DWS Research)