Capital Market Assumptions - April 2023

Important information
Source: Ninety One proprietary capital market assumptions as at 31 March 2023.

These estimates are gross of fees (returns can be reduced by management fees and other expenses incurred) and reflect the view of Ninety One’s multi-asset team, whilst the views of other teams across Ninety One may differ. Details on our Capital Market Assumptions methodology available upon request.

Our expected returns estimates are for illustrative purposes only, are not a guarantee of performance and are subject to change. They are provided merely as a framework to assist in the implementation of an investor’s own analysis and an investor’s own view on the topic discussed herein. They should not be relied upon as recommendations to buy or sell securities. Forecasts of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. The outputs of the assumptions are provided for illustration/discussion purposes only and are subject to significant limitations. Expected return estimates are subject to uncertainty and error. Expected returns for each asset class are conditional on an economic scenario; actual returns in the event the scenario comes to pass could be higher or lower, as they have been in the past, so an investor should not expect to achieve returns similar to the outputs shown herein. Because of the inherent limitations of all models, potential investors should not rely exclusively on the model when making a decision. Unlike actual portfolio outcomes, the model outcomes do not reflect actual trading, liquidity constraints, fees, expenses, taxes and other factors that could impact the future returns. Note that these asset class assumptions are passive, and do not consider the impact of active management. All estimates in this document are in US dollar terms unless noted otherwise. The final total returns are converted from logarithmic to geometric estimates. This means that the components of the return breakdown may not sum to the total return. While useful for modelling and calculation purposes, the logarithmic return is theoretical (assumes continuously compounding returns) whereas the geometric estimate reflects practical experience (reflects discrete periods of compounded returns).

Indices
Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable.

If applicable MSCI data is sourced from MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

If applicable FTSE data is sourced from FTSE International Limited (‘FTSE’) © FTSE 2022. Please note a disclaimer applies to FTSE data and can be found at www.ftse.com/products/downloads/FTSE_Wholly_Owned_Non-Partner.pdf.

Global equities = MSCI All Countries World; Developed equities = MSCI World; US equities = MSCI USA; Continental Europe equities = MSCI Europe ex UK; Japan equities = MSCI Japan; UK equities = MSCI UK; Emerging equities = MSCI EM; China equities = MSCI China; Global sovereign bonds = Country-weighted composites, based on the JP Morgan Global Bond Index, of our regional estimates*; US, Europe, Japan, UK, China sovereign bonds = Notional 10-year bond; Emerging (Local Currency) bonds = Country-weighted composites, based on the JP Morgan GBI-EM Global Diversified, of our regional estimates*; US Investment Grade = Notional 10-year bond, using Bloomberg US IG Yield Curve; US High Yield = Notional 5-year bond, using ICE BAML US High Yield index for OAS; Sovereign Emerging (Hard Currency) = Notional 10-year bond using JP Morgan EMBI Global Diversified Index spread; Emerging Investment Grade = Notional 5-year bond using JP Morgan CEMBI Global Diversified Index spread.

*Not all of which are shown here.