Is 5% the right return target for institutional investors?

April 4, 2018


Institutional investors have used the 5% real return as a standard investment target for decades, but the odds of achieving it are little more than a coin flip. This paper examines what it might take to consistently hit a goal of 5% real return.

Use this paper to:

  • Analyze historical and forecast returns for traditional 60% stock/40% bond portfolios.
  • Examine three key levers that institutions can use to maximize the probability of achieving success.
  • Understand how a comprehensive approach could help clients ensure that they're on target for their long-term goals.



  • All investing is subject to risk, including possible loss of principal.


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