You are attested as a Financial Advisor / Intermediary, but this page is intended for a Institutional Investor.
You are attested as a Borrower, but this page is intended for an Institutional Investor.
You are attested as an Individual Investor, but this page is intended for an Institutional Investor.
Key Updates in This Quarter's Forecasts
Our long-term outlook for fixed income assets shifted significantly higher from last quarter, coincident with the increase in sovereign
interest rates in Q4 2024. Adjustments to our 10-year annualized return forecasts include:
- US Aggregate Bonds: Revised to 5.23% from 4.09% last quarter.
- US Long Treasury Bonds: Revised to 5.84% from 4.26% last quarter.
- Global Aggregate Bonds Hedged: Revised to 4.56% from 3.85% last quarter.
Our 10-year forecasts for equity markets outside the US continue to exceed those of large-capitalization US equities, primarily attributable to more favorable valuations:
- US Large-Cap Equities: Forecasted at 5.79%.
- International Equities ex-US: Forecasted at 8.27%.
- Emerging Markets Equities: Forecasted at 8.79%.
This quarter's portfolio rebalancing recommendations include:
- Reduction in US Equity allocation.
- Reduction in Commodity allocation.
- Increase in Fixed Income exposure.
Note: Forecasts may not be achieved and are not a guarantee or reliable indicator of future results
