Long-Term Capital Market Assumptions and Private Market Investments

This document is a technical report that summarizes Invesco's latest long-term Capital Market Assumptions (CMAs) and reviews recent trends in market asset allocation. It discusses the impact of rising inflation and interest rates on global capital markets, emphasizing the need for asset allocators to reassess their positions, particularly in private markets. The report highlights that despite market volatility, private market investments continue to present a strong case for allocation due to their potential returns and diversification benefits. It outlines the anticipated performance of various asset classes, noting that fixed income is expected to provide a more attractive environment for investment, while global equities are projected to yield around 7% in USD. The report further details the correlation of real estate with traditional asset classes and suggests that real estate remains a viable option for diversification. Finally, it discusses the historical performance of real estate investments following market corrections, indicating potential opportunities for investors.