GMO 7-Year Asset Class Real Return Forecasts

*
As of August 31, 2013
8% Stocks 6.9% 6% Bonds
6.5% Long-term Historical US Equity Return

Other

5.9%

Annual Real Return Over 7 Years

4%

3.6% 3.2% 2.6% 2.2%

2% 0.5% 0% -0.4% -2% -1.6% 0.8%

-1.9% -3.1%

-4%
Inflation Cash Timber Linked Bonds *The chart represents real return forecasts for several asset classes and not for any GMO fund or strategy. These forecasts are forward-looking statements based upon the reasonable beliefs of GMO and are not a guarantee of future performance. Forward-looking statements speak only as of the date they are made, and GMO assumes no duty to and does not undertake to update forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results may differ materially from those anticipated in forward-looking statements. US inflation is assumed to mean revert to long-term inflation of 2.2% over 15 years. US Large US Small US High Quality Intl Large Intl Small Emerging US Bonds Intl Bonds Hedged Emerging Debt

GMO
7YrForecasts

Source: GMO

1

Proprietary information – not for distribution. Copyright © 2013 by GMO LLC. All rights reserved.

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