Anorganisation’s return assumptions are a very important factor in managing both short and long term financial security after portfolio structure.

When an advisor is projecting the ability of your assets to meet your financial needs over time they will be using estimates of future return.  If these estimatesmisjudge risks over short time periods (5 to 10 years), they can have adverse effects on your financial security. 

TAMRIS will assess the risk and return assumptions used in the modelling and the way in which they have been generated. 

TAMRIS has expertise in generating long term risk and return assumptions and in assessing risks to return and their consequences for financial security.

The following chart shows the risk/return assumptions that TAMRIS was using as of May 2000 for the US market.

The chart shows the real long term risk/return assumption for the US market (S&P 500) as of May 2000 that was used to assess ability of US assets to meet long term financial needs. Even after 14 years, the total real return on equities (including reinvestment of dividends) was modelled (not forecast) to be negative. 

Many organisations at the time were basing future financial security on significant and positive long term return assumptions.