In focus

10-year return forecasts: how might major asset classes perform?


Long-term capital market assumptions are forward-looking estimates of total returns which are an important component for strategic asset allocation modelling and portfolio construction.

This note outlines our methodology for estimating 10-year capital market returns in local currency terms. Our approach was developed using a framework predominantly based on market measures allowing for a transparent, timely and systematic process updated twice a year.

To ensure our framework is coherent and consistent across asset classes and markets, we make use of certain reference assets (for example, US equities and government bond) as ‘anchors’ for estimating total returns for other asset classes.

The PDF below contains the full forecasts and information about the methodology used.

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The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.