“A reasonable rate of return suggests not taking too much risk,” says Chris Kenny, a partner at Smith & Williamson Investment Management, yet with inflation eating away at capital any return above inflation could be seen as a reasonable outcome.
With core asset class returns as they are – cash is talked about in terms of a return of capital rather than a return on capital – even beating inflation means taking a greater level of risk. However, in an interview with Portfolio Adviser, Kenny argues that rather than taking more risk he is simply taking different risks.
