We are pleased to present our 2014 Long-Term Capital Market Return Assumptions — our annual assessment of the long-term outlook for all major asset classes and markets.
Now in their 18th year, our Long-Term Capital Market Return Assumptions are the result of meticulous analysis by our Capital Market Assumptions Committee, a team of senior investors from across our firm. This analysis is supported by input from portfolio managers and product specialists based in our offices around the world.
These Long-term Capital Market Return Assumptions are used widely by institutional investors—including pension plans, insurance companies, endowments and foundations — to ensure that investment policies and decisions are based on real-world, consistent views and can be tested under a variety of market scenarios.
This full report is intended to be a comprehensive analysis, offering an accessible and transparent audit trail for clients and their boards and regulators.
Long-term capital market return assumptions 2014
J.P. Morgan Asset Management Long-term Capital Market Return Assumptions summarize our long-term (10–15 year) return expectations, expected volatilities and correlations across key asset classes.
This executive summary highlights the major investment themes and the rationale behind our long-term capital market return assumptions.
Three senior members of our Assumptions Committee–David Shairp, Michael Feser and Tony Werley–will reveal our 18th annual updated long-term (10- to 15-year) capital market return and risk assumptions which include:
A review of the broad themes impacting our capital market assumptions-particularly, whether markets are finally returning to normality after the dislocation of the financial crisis
An overview of our assumptions over the last decade, looking at how well they have stood the test of time during an unprecedented period
A presentation of our long-term outlook across a broad range of asset classes, from traditional to alternative