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Expected Returns: Equities<br />
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SA equities are fully priced on an absolute basis, but are still<br />
attractive relative to other asset classes<br />
Last year’s return was primarily delivered through earnings growth,<br />
and multiples stayed at high levels of 17.2x<br />
Therefore, earnings growth will be crucial to delivering this year’s<br />
returns<br />
We expect earnings growth of 25%, led by resources<br />
Internationally, we also expect another strong year of corporate<br />
profits as the economy recovers<br />
Excellent corporate balance sheets will also provide plenty of<br />
firepower for corporate action: takeovers, buybacks, dividends<br />
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