"We've got this debt overhang, we've got un-met fiscal challenges and you've got the central bank exit strategies and the usual policies. So we think it adds up to those mediocre returns."
However, Clarida said the house view on the global economy is bullish, especially in the emerging market context.
"We think it is a good time to get into equities with global exposure," he continued, emphasizing that companies which lack that global reach "probably might disappoint".
Clarida also said he believes in deep-value investing and that staying nimble pays in the long run.
"This is an investing environment where you can't be wedded to rules of thumb...You have to be nimble in your asset allocation," he advised.
Some sectors he favors includes financials, pharmaceuticals, and companies with compelling track records.
Clarida said that a firm's global exposure, balance sheet and management are all important in deciding whether they make good investments.
"All of those things that go in and out of fashion...from our perspective, we think will deliver a good return profile."