Asset-class assumptions
Review the expected returns, risks, income, liquidity and correlations used in the modelling.
Inputs by asset class
Switch between the default Macquarie assumptions and the comparison proxy set.
2026 Macquarie asset class assumptions are the default for all portfolios.
| Asset class | Expected return | Volatility | Income yield | CPI+ | Liquidity |
|---|---|---|---|---|---|
| Australian Equities | 9.0% | 17.4% | 3.6% | 6.5% | Funds have daily applications and redemptions. Typically T+2 settlement |
| International Equities | 8.4% | 15.7% | 2.1% | 5.9% | Funds have daily applications/redemptions. Typically T+2 to T+3 settlement |
| Private Equity | 10.9% | 22.5% | 1.2% | 8.4% | Illiquid assets; product structures may allow periodic application/redemptions although underlying is illiquid |
| Hedge Funds | 7.3% | 7.2% | 1.8% | 4.8% | Periodic liquidity, typically subject to fund terms, notice periods and gates |
| Infrastructure | 8.2% | 10.9% | 3.8% | 5.7% | Listed vehicles may offer daily liquidity; unlisted funds may have limited periodic liquidity |
| Property | 7.8% | 12.2% | 4.0% | 5.3% | Listed vehicles may offer daily liquidity; unlisted funds may have limited withdrawal windows |
| Private Credit | 8.4% | 8.8% | 5.7% | 5.9% | Limited periodic liquidity; withdrawal windows do not guarantee exit and may be subject to queues, gates or suspension |
| Australian Fixed Income | 4.8% | 4.0% | 3.9% | 2.3% | Typically daily liquidity via listed or managed-fund structures, subject to market conditions |
| International Fixed Income | 4.9% | 5.0% | 3.5% | 2.4% | Typically daily liquidity via listed or managed-fund structures, subject to market conditions |
| Short Duration & Cash | 3.4% | 1.6% | 3.4% | 0.9% | High liquidity, generally suitable for short-term liquidity needs |
Correlation Heatmap
Review the correlation matrix used by the covariance-based risk engine.
Base correlations.
| Asset class | Aus Equities | Intl Equities | Private Equity | Hedge Funds | Infrastructure | Property | Private Credit | Aus Fixed Income | Intl Fixed Income | Short Duration & Cash |
|---|---|---|---|---|---|---|---|---|---|---|
| Aus Equities | 1.00 | 0.69 | 0.81 | 0.30 | 0.23 | 0.31 | 0.40 | -0.10 | 0.00 | 0.01 |
| Intl Equities | 0.69 | 1.00 | 0.86 | 0.30 | 0.23 | 0.26 | 0.35 | -0.03 | 0.02 | 0.00 |
| Private Equity | 0.81 | 0.86 | 1.00 | 0.38 | 0.30 | 0.37 | 0.44 | -0.12 | 0.05 | 0.04 |
| Hedge Funds | 0.30 | 0.30 | 0.38 | 1.00 | 0.17 | 0.20 | 0.24 | -0.09 | 0.05 | 0.23 |
| Infrastructure | 0.23 | 0.23 | 0.30 | 0.17 | 1.00 | 0.20 | 0.16 | -0.08 | 0.02 | 0.17 |
| Property | 0.31 | 0.26 | 0.37 | 0.20 | 0.20 | 1.00 | 0.23 | -0.14 | -0.01 | 0.19 |
| Private Credit | 0.40 | 0.35 | 0.44 | 0.24 | 0.16 | 0.23 | 1.00 | -0.30 | -0.01 | 0.15 |
| Aus Fixed Income | -0.10 | -0.03 | -0.12 | -0.09 | -0.08 | -0.14 | -0.30 | 1.00 | 0.41 | 0.19 |
| Intl Fixed Income | 0.00 | 0.02 | 0.05 | 0.05 | 0.02 | -0.01 | -0.01 | 0.41 | 1.00 | 0.24 |
| Short Duration & Cash | 0.01 | 0.00 | 0.04 | 0.23 | 0.17 | 0.19 | 0.15 | 0.19 | 0.24 | 1.00 |