0 GMO

GMOstandardbook template
Proprietary information not for distribution. Copyright 2014 by GMO LLC. All rights reserved.
Source: GMO
GMO 7-Year Asset Class Real Return Forecasts*
As of June 30, 2014
*Thechart represents real return forecasts for several asset classes and not for any GMO fund or strategy. Theseforecasts areforward-looking statements based upon thereasonable
beliefs of GMO and arenot a guaranteeof futureperformance. Forward-looking statements speak only as of thedatethey aremade, and GMO assumes no duty to and does not
undertaketo updateforward-looking statements. Forward-looking statements aresubject to numerous assumptions, risks, and uncertainties, which changeover time. Actual results
may differ materially fromthoseanticipated in forward-looking statements. US inflation is assumed to mean revert to long-terminflation of 2.2% over 15 years.
6.5% Long-term Historical US Equity Return
-1.7%
-5.2%
2.2%
0.7%
0.5%
3.6%
0.0%
-2.6%
1.6%
-0.1%
-0.4%
5.4%
-6%
-4%
-2%
0%
2%
4%
6%
8%
US Large US Small US High
Quality
Intl Large Intl Small Emerging US Bonds Intl Bonds
Hedged
Emerging
Debt
Inflation
Linked
Bonds
Cash Timber
A
n
n
u
a
l

R
e
a
l

R
e
t
u
r
n

O
v
e
r

7

Y
e
a
r
s
Stocks Bonds Other