Illustrative Assumptions
Asset-class assumptions presented in a clean discussion format.
Review the default Macquarie assumption set, then optionally compare against first-pass JPM proxies using the specified mapping labels.
Asset-Class Assumptions
Macquarie is the default assumption view. The JPM toggle provides a secondary comparison using first-pass proxies.
Macquarie remains the primary reference set. JPM is shown only as a secondary first-pass proxy lens.
Macquarie is the default assumption set used for all portfolio views and builder starting points.
| Asset class | Expected return | Volatility | Income yield | CPI+ |
|---|---|---|---|---|
| Australian Equities | 7.1% | 15.2% | 3.6% | 4.4% |
| International Equities | 7.4% | 14.1% | 2.1% | 4.7% |
| Private Equity | 9.1% | 18.5% | 1.2% | 6.4% |
| Hedge Funds | 5.9% | 7.8% | 1.8% | 3.2% |
| Infrastructure | 6.8% | 10.6% | 3.8% | 4.1% |
| Property | 6.2% | 11.5% | 4.0% | 3.5% |
| Private Credit | 6.5% | 6.3% | 5.7% | 3.8% |
| Australian Fixed Income | 4.3% | 5.4% | 3.9% | 1.6% |
| International Fixed Income | 4.1% | 4.8% | 3.5% | 1.4% |
| Short Duration & Cash | 3.5% | 1.2% | 3.4% | 0.8% |
Correlation Heatmap
The covariance-based risk engine uses the seeded correlation matrix below. Values are local placeholders so final approved assumptions can be dropped in later.
| 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 | 0.78 | 0.66 | 0.52 | 0.48 | 0.55 | 0.32 | -0.18 | -0.12 | 0.02 |
| Intl Equities | 0.78 | 1.00 | 0.72 | 0.58 | 0.44 | 0.49 | 0.35 | -0.14 | -0.08 | 0.01 |
| Private Equity | 0.66 | 0.72 | 1.00 | 0.54 | 0.39 | 0.41 | 0.37 | -0.10 | -0.06 | 0.00 |
| Hedge Funds | 0.52 | 0.58 | 0.54 | 1.00 | 0.36 | 0.33 | 0.42 | 0.06 | 0.08 | 0.04 |
| Infrastructure | 0.48 | 0.44 | 0.39 | 0.36 | 1.00 | 0.61 | 0.28 | 0.05 | 0.07 | 0.03 |
| Property | 0.55 | 0.49 | 0.41 | 0.33 | 0.61 | 1.00 | 0.31 | 0.03 | 0.05 | 0.02 |
| Private Credit | 0.32 | 0.35 | 0.37 | 0.42 | 0.28 | 0.31 | 1.00 | 0.17 | 0.19 | 0.08 |
| Aus Fixed Income | -0.18 | -0.14 | -0.10 | 0.06 | 0.05 | 0.03 | 0.17 | 1.00 | 0.64 | 0.23 |
| Intl Fixed Income | -0.12 | -0.08 | -0.06 | 0.08 | 0.07 | 0.05 | 0.19 | 0.64 | 1.00 | 0.26 |
| Short Duration & Cash | 0.02 | 0.01 | 0.00 | 0.04 | 0.03 | 0.02 | 0.08 | 0.23 | 0.26 | 1.00 |