Wealth Outlook 2024 - Slow then grow

38 Wealth Outlook 2024 | Portfolio views Core portfolios could be ready to shine FIGURE 2 Long-term outlook for asset classes – our Strategic Return Estimates (SREs) 2024 SRE 2023 SRE 2022 SRE Global Equities 8.70% 7.60% 4.20% Developed Market Equities 8.20% 7.00% 3.80% Emerging Market Equities 12.80% 12.90% 8.10% Global Fixed Income 5.80% 5.10% 2.00% Investment Grade Fixed Income 5.40% 4.60% 1.80% High Yield Fixed Income 7.90% 7.40% 2.60% Emerging Market Fixed Income 8.10% 7.80% 3.60% Cash 4.30% 3.40% 0.90% Hedge Funds 11.50% 9.10% 4.10% Private Equity 19.50% 17.60% 11.60% Real Estate 10.90% 10.60% 8.80% Commodities 2.70% 2.40% 1.50% Source: CGWGlobal Asset Allocation and Quantitative Research Team. Strategic Return Estimates (SREs) for 2024 based on data October 2023, prior Strategic Return Estimates for 2023 (based on dataas of October 2022) and 2022 (based on data as of October 2021). Returns estimated in US Dollars. All estimates are expressions of opinion and are subject to change without notice and are not intended to be a guarantee of future events. Strategic Return Estimates are no guarantee of future performance. Past performance is no guarantee of future returns. Strategic Return Estimates based on indices are Citi Global Wealth’s forecast of returns for specific asset classes (to which the index belongs) over a 10-year time horizon. Indices are used to proxy for each asset class. The forecast for each specific asset class is made using a proprietary methodology that is appropriate for that asset class. Equity asset classes utilize a proprietary forecasting methodology based on the assumption that equity valuations revert to their long-termtrend over time. Themethodology is built around specific valuation measures that require several stages of calculation. Assumptions on the projected growth of earnings and dividends are additionally applied to calculate the SRE of the equity asset class. Fixed Income asset class forecasts use a proprietary forecastingmethodology that is based on current yield levels. Other asset classes utilize other specific forecasting methodologies. SRE do not reflect the deduction of client fees and expenses. Past performance is not indicative of future results. Future rates of return cannot be predictedwith certainty. Investments that pay higher rates of return are often subject to higher risk and greater potential loss in an extreme scenario. The actual rate of return on investments can vary widely. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index. All SRE information shown above is hypothetical not the actual performance of any client account. Hypothetical information reflects the application of a model methodology and selection of securities in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading.