Capital market assumptions: A building block methodology

A detailed look at our long-term asset class forecasts and the supporting methodology 

May 1, 2017 | Invesco

Capital market assumptions (CMAs) provide the necessary foundation for creating long-term forecasts for the behavior of different asset classes. Specifically, for each of the asset classes in which we invest, we develop assumptions with regard to expected return, standard deviation of return (volatility) and correlation with other asset classes.

We evaluate current and historical market data, in the context of a 10-year investment horizon, in order to develop guidelines for our long-term, strategic asset allocation decisions.

This document details our long-term asset class forecasts and the supporting methodology. Our CMAs encompass a broad array of asset classes across equity, fixed income and commodity markets globally. 


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