Market Update

Capital Market Assumptions

Providing long-term estimates for the behaviour of major asset classes globally

Invesco Investment Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally. 

The assumptions, which are based on a 10-year investment time horizon, are intended to guide strategic asset allocations. For each selected asset class, we develop assumptions for expected return, standard deviation of return (volatility) and correlation with other asset classes.

Listen to the podcast
Ben Gutteridge - Director of Model Portfolio Services, talks to Jacob Borbidge, Senior Portfolio Manager and Head of Investment Research, Invesco Investment Solutions about the team’s latest CMAs and how COVID-19 continues to implicate portfolio management over the long-term.
10-year asset class expectations as at 30 June 2020 (GBP)
10-year asset class expectations as at 30 June 2020 (GBP)
Source: Invesco, estimates as of June 30, 2020. Proxies listed in our latest 2020 Capital Market Assumptions Q3 update whitepaper. These estimates are forward-looking, are not guarantees, and they involve risks, uncertainties, and assumptions. Please see our latest 2020 Capital Market Assumptions Q3 update whitepaper for information about our CMA methodology. Please see our methodology paper for additional CMA information. These estimates reflect the views of Invesco Investment Solutions, the views of other investment teams at Invesco may differ from those presented here. Performance, whether actual or simulated, does not guarantee future results.

Our latest whitepapers summarise:

  • Notable changes in our long-term asset class expectations
  • Global and local market commentary 
  • Strategic and tactical asset allocation outlooks and investment implications
  • 10-year asset class estimated risk/ return attribution analysis
  • Plus an extensive look into our capital market assumptions methodology

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.