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Investment Perspectives: Benchmarking total returns

Investing is about deferred consumption. The reward for deferred consumption is the ability to consume more in the future. 

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Beating an index, cash or bonds may deliver this outcome but is not a guarantee; however, consistently ‘beating inflation’ is more likely to deliver on this objective.

Risk assets (Real Estate and Equity) tend to always outperform inflation over time, so inflation by itself is not much of a benchmark. At Quay, we aim to exceed inflation by 5% per annum. Here’s why.