Capital Market Assumptions and Asset Allocation Perspectives

Long-term Asset Expectations, Outlooks and Tactical Positioning

As global investors are assessing what this year may mean for asset classes going forward, different assumptions about market performance inform a diverse range of outlooks and expectations. In this handpicked research pack, the Savvy team offers investors a collection of in-depth papers that examine long-term capital market expectations, various outlooks and some key perspectives on the process of asset allocation.

Capital Markets Assumptions

Capital Market Assumptions: 2023 Edition – Five-Year Outlook (Northern Trust)

A major re-pricing is ongoing right now across financial markets due to changes in monetary policies, lowering some of the future expectations for asset classes.

2022 Capital Market Assumptions: Q3 update (Invesco)

For compliance reasons, this paper is only accessible in certain geographies

Most asset classes are expected to perform broadly in line with their historical averages, especially in the fixed income space. How will investors' strategic allocations change?

Long-term Capital Market Expectations: Mid-year 2022 (MFS)

For compliance reasons, this paper is only accessible in certain geographies

The next decade may be radically different than what we've seen so far in terms of how capital markets perform. EM Equities are expected to do well on a risk-adjusted basis.

2022 Mid-Year Private Markets Outlook (Apogem Capital)

For compliance reasons, this paper is only accessible in certain geographies

A key advantage of allocating to private markets is the absence of volatility. As such, despite their lack of liquidity, private assets remain attractive to global investors.

Taking the Temperature Of the Private Markets: Mid-year Outlook (LGIM)

For compliance reasons, this paper is NOT accessible in the United States and Canada

A tectonic shift is underway across the global investment landscape: the 60/40 portfolio is no longer delivering, and allocators are looking for new risk-adjusted opportunities.

Global Market Outlook: Investing in a bear market (NEPC, Jul 2022)

Investing during a market downturn while sentiment is depressed can be a challenging task. This paper provides guidance of how to invest in a bear market.

Asset Allocation Perspectives

Asset Allocation Highlights – Expectations Out of Line (BNP Paribas AM)

The risks that have piled on investors’ radars this year have changed the expectations behind how asset classes may perform going forward.

Advanced Investment Phazer: A Guide to Dynamic Asset Allocation (Amundi)

For compliance reasons, this paper is NOT accessible in the United States

Dynamic asset allocation or DAA has become a common practice among investors who seek to allocate in line with economic cycle changes.

Improve Portfolio Correlation & Asset Allocation With Hedged Equity (CAIA, 2022)

Equity market volatility can have a tremendous impact on portfolio diversification. Consequently, it should form an important part of each asset allocation decision.

Defining Tactical Asset Allocation (FactorResearch, 2022)

Tactical asset allocation using ETFs is not a "fit-all" solution: even these relatively cheap products need to justify their fees.