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AAP
AAP
Business
Derek Rose

Earnings, yield to drive returns in 2023

The official cash rate has soared from 0.1 per cent to 3.1 per cent, impacting heavily on markets. (Bianca De Marchi/AAP PHOTOS) (AAP)

It's been a tough year for most equities and investors will likely have to accept lower returns in 2023 - but Australia will still likely outperform its global peers, according to a boutique fund manager.

SG Hiscock portfolio manager Hamish Tadgell says shares are reaching a "real pivotal change" after 30 years of declining interest rates driving markets.

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