Schroders’ latest 10-year return forecasts point to stronger opportunities outside the US, with UK, Japanese and emerging market equities expected to lead the way. The report also examines the outlook for bonds, cash and alternative assets in the decade ahead.
Schroders has published its latest 10-year public markets return forecasts for 2026-2035, offering a detailed view of the opportunities and challenges likely to shape portfolio returns over the coming decade.
Produced by the firm’s Multi-Asset Research & Analytics team headed up by Riaz Fidahusein, the forecasts are designed to support long-term strategic asset allocation and provide insight into expected returns across equities, bonds, cash and alternative assets.
The report suggests that investors may find better opportunities beyond the US market. UK equities are forecast to deliver annualised returns of 8.7% over the next decade, compared with 5.4% for US equities, while Japanese and emerging market equities top the rankings with expected returns of 9.1% and 9.2% respectively.
In fixed income, emerging market local currency debt is expected to generate annual returns of 6.1%, ahead of most developed market government bonds. Meanwhile, alternative assets continue to offer attractive return potential, with global REITs forecast to return 7.0% and hedge funds 6.4%.
Alongside its forecasts, Schroders outlines the methodology used to assess expected returns, valuations and risk across global markets.
Read the full report here: 10-year public markets return forecasts (2026–35)
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