Long term Capital Market Assumptions (LTCMA) form a vital component of systematic long-term asset allocation approaches.
This report highlights significant developments to our 10-year (i.e. 2025-2034) asset class return assumptions since the last review, and the impact of macroeconomic and monetary policy developments, amongst other factors.
It presents LTCMA for selected sub-asset class indices within equities, fixed income and commodities.
Key takeaways:
- A modest decline in 10-year overall equities return assumptions.
- Normalised yield environment likely to support fixed income.
- Returns for U.S. Treasuries and EUR High Yield have moved slightly higher.