Capital Group Issues Capital Market Assumptions
LOS ANGELES, Feb. 23, 2024 /PRNewswire/ -- Capital Group, one of the world's largest and most experienced active investment managers, issued its 2024 Capital Market Assumptions (CMAs), which represent the company's long-term expectations for returns, as well as correlations and volatilities of major asset classes over a 20-year time horizon. Capital Group's CMAs serve as the foundational inputs for the quantitative models that inform the firm's solutions offerings, including model portfolios, and its target date series, which serves nearly 10 million US households.
- 2024 report notes outlook is positive for long-term investors; assumptions are higher for bonds
LOS ANGELES, Feb. 23, 2024 /PRNewswire/ -- Capital Group, one of the world's largest and most experienced active investment managers, issued its 2024 Capital Market Assumptions (CMAs), which represent the company's long-term expectations for returns, as well as correlations and volatilities of major asset classes over a 20-year time horizon. - Capital Group's CMAs serve as the foundational inputs for the quantitative models that inform the firm's solutions offerings, including model portfolios, and its target date series, which serves nearly 10 million US households.
- "Overall, the outlook is still bright for long-term investors and bonds are better poised to play their role as an equity diversifier in the years ahead," said Maddi Dessner, Head of Global Asset Class Services, Capital Group.
- Based on its 2024 Capital Markets Assumptions, Capital Group expects:
6.9% annualized return for U.S. equities over a 20-year horizon, supported by estimates of GDP growth greater than 2%, increased innovation and enhanced productivity gains.