The wealth management investment model of diversified multi-asset-class/style portfolios, implemented by selecting style-consistent active managers, has served wealth manager clients well. However, during the last few years, there has been a growing consensus that future market returns will be less than long-term historical averages. To date, there has been no discussion regarding the implications of lower market returns on the wealth management investment model. This paper concludes that in an environment of lower market returns, the current model may no longer serve either clients or practitioners well. As a consequence, wealth managers should revisit and possibly revise many investment aspects of their current practice...

Background Equity-Risk Premium Implications for Portfolio Design and Implementation Benefit Versus Costs Benefit Evaluation Models.