PGIM’s Capital Market Assumptions are long-term forecasts for returns, risk, and other characteristics across a range of asset classes. They are designed to help investors evaluate potential portfolio outcomes over a 10-year investment horizon. The assumptions are updated regularly and are subject to change. Forecasts may not be achieved and are not guarantees of future results.

The 12-month Global Market Outlook focuses on shorter-term market and economic expectations, while the Capital Market Assumptions provide long-term expectations over a 10-year horizon. Investors may use each resource for different purposes. The macroeconomic views underpinning the shorter-term outlooks may differ from those used in the Capital Market Assumptions.

Expected returns are based on a range of factors that may include current valuations, yields, economic growth expectations, inflation forecasts, interest rates, and market fundamentals. Different asset classes are influenced by different combinations of these factors. Expected returns are gross of fees and are not reflective of PGIM portfolio returns. Shown for illustrative purposes only. This information is not intended as a recommendation to invest in any particular asset class or strategy. Forecasts may not be achieved, are subject to change, and are not a guarantee or reliable indicator of future results.

The report includes analysis designed to illustrate how outcomes may differ under varying economic environments. This helps demonstrate that a range of outcomes is possible and that actual results may differ from expectations.