Northern Trust Asset Management’s 2023 Capital Market Forecast

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About This Episode

Northern Trust’s Capital Market Assumptions (CMA) report, an annual report of long-term average annualized return expectations for a wide range of asset classes, forecasts below-trend global growth at an annualized rate of 2.4% over the next 10 years, moderating developed-market inflation of 2.4%, and a lower global equity return of 6.3% a year on average. The CMA report’s asset class forecasts are driven by six key themes that Northern Trust investment experts see affecting markets and the economy over the next 10 years: restraints on global economic growth, geopolitical fault lines, adaptation to persistent inflation, central bank concessions to inflation, a sustainable green transition, and growing private markets.

Rooted in the firm’s deep capital market analysis, the CMA report informs the investment decisions and asset allocation recommendations made by Northern Trust, which as of June 30, 2023, had US$1.4 trillion in assets under management. Forecasts are created with a “forward-looking, historically aware” approach, analyzing the past drivers of returns across asset classes and developing investment themes that inform how those return drivers may evolve in the future.

About Our Guest

Chris Shipley is chief investment strategist for North America, responsible for the strategic and tactical asset allocation policy for our institutional and wealth management clients. Chris chairs the Northern Trust Tactical Asset Allocation Committee and is a voting member of the Investment Policy Committee.

Previously at Northern Trust, Chris was head of fundamental equities, director of equity research, and lead analyst in the financial services sector. Prior to joining Northern Trust in 2000, he was an investment associate in the equity investments division at Allstate Insurance Company in Northbrook, Illinois.

Chris earned an MBA from the University of Notre Dame and a bachelor’s degree in finance from Northern Illinois University.

Show Notes

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