Capital Market Assumptions: How we estimate asset class returns

Our views of equities, fixed income and alternatives shape our multi-asset portfolios and inform our clients

Posted by Duy Nguyen, Portfolio Manager, CIO, Invesco Global Solutions Development and Implementation team and Jacob Borbidge, Portfolio Manager, Invesco Global Solutions

Capital market assumptions (CMAs) are fundamental to the Invesco Global Solutions team and our work as multi-asset investors. These are our long-term estimates for the behavior of different asset classes, and they serve as the foundation for allocations across equities, fixed income, commodities and alternatives in our portfolios.Estimates for these asset classes are mostly based on a “building block methodology” that examines the underlying drivers of asset class returns. Let’s take a closer look at the building blocks for equities, fixed income and commodities, and our outlook for these asset classes over the long-term ...

Continue reading the full article,  Capital Market Assumptions - How we estimate asset class returns  on Invesco US Blog.