Factors impacting the 2017 assumptions were continued low economic growth, aging population demographics and the impact of low interest rates on equity risk premiums. Real GDP expectations for 2017 were lower in the U.S., eurozone and emerging markets, with the only expected increase to be in Australia.
J.P. Morgan 2017 capital market assumptions
Real assets -- real estate, commodities and gold -- are a bright spot with return assumptions remaining stable or slightly higher. Private equity assumed returns declined 50 basis points from 2016, but remains the most attractive asset class with an 8% assumed long-term return.