7YearAssetClassRealReturnForecasts*

AsofMarch31,2017

STOCKS BONDS
10%

8%
6.5%Longterm
HistoricalU.S.
AnnualRealReturnOver7Years

6% EquityReturn
3.8%
4%

2% 0.9%
0.0%
0%
0.1% 0.4% 0.1%
0.6% 0.8%
2%

4% 3.2% 2.8%
3.8%
6%

8%
U.S. U.S. U.S.High Intl Intl Emerging U.S. Intl Emerging U.S. U.S.
Large Small Quality Large Small Bonds Bonds Debt Inflation Cash
Hedged Linked
Bonds

Source:GMO
*Thechartrepresentslocal,realreturnforecastsforseveralassetclassesandnotforanyGMOfundorstrategy.Theseforecastsareforwardlookingstatementsbaseduponthereasonablebeliefsof
GMOandarenotaguaranteeoffutureperformance.Forwardlookingstatementsspeakonlyasofthedatetheyaremade,andGMOassumesnodutytoanddoesnotundertaketoupdateforward
lookingstatements.Forwardlookingstatementsaresubjecttonumerousassumptions,risks,anduncertainties,whichchangeover time.Actualresultsmaydiffermateriallyfromthoseanticipatedin
forwardlookingstatements.U.S.inflationisassumedtomeanreverttolongterminflationof2.2%over15years.

Proprietaryinformation notfordistribution.Copyright2017byGMOLLC.Allrightsreserved.