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FIVE-YEAR CMA FORECAST:

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              FIXED INCOME EQUITIES REAL ASSETS ALTERNATIVES
        FIVE-YEAR CMA FORECAST UNITED STATES EUROPE JAPAN UK CANADA AUSTRALIA GLOBAL DEVELOPED MARKETS EMERGING MARKETS GLOBAL
ASSET CLASS    
Benchmark
Geometric Return Arithmetic Return Risk Cash                                                                              
FIXED INCOME UNITED STATES Cash FTSE Treasury Bill 3 Mon 2.8 2.8 0.4 1.00 Inflation
Linked
                                                                           
Inflation Linked Bloomberg Gbl Infl Linked US TIPS 3.4 3.6 5.7 0.02 1.00 Investment
Grade
                                                                         
Investment Grade Bloomberg US Agg Bond 3.7 3.8 3.5 0.08 0.78 1.00 High Yield                                                                        
High Yield Bloomberg US Corporate High Yield 7.4 7.8 8.9 -0.09 0.37 0.25 1.00 Municipal                                                                      
Municipal Bloomberg Municipal 1-10Y Blend 1-12Y 2.6 2.6 3.0 0.04 0.59 0.74 0.29 1.00 Cash                                                                    
EUROPE Cash JPM GBI Germany 3 Mon 0.3 0.7 9.5 0.10 0.36 0.24 0.39 0.13 1.00 Inflation
Linked
                                                                 
Inflation Linked Bloomberg Euro Govt Infl Lkd 2.2 2.9 11.5 0.04 0.54 0.42 0.49 0.29 0.90 1.00 Investment
Grade
                                                               
Investment Grade Bloomberg Euro Agg Bond 2.1 2.6 10.0 0.06 0.50 0.46 0.42 0.32 0.94 0.96 1.00 Cash                                                              
JAPAN Cash JPM GBI Japan 3 Mon 0.1 0.5 8.9 0.06 0.37 0.44 -0.05 0.38 0.23 0.23 0.29 1.00 Inflation
Linked
                                                           
Inflation Linked Bloomberg JPN Govt Infl Lkd 0.1 0.6 9.6 0.01 0.55 0.53 0.18 0.44 0.33 0.38 0.40 0.90 1.00 Investment
Grade
                                                         
Investment Grade Bloomberg Japanese Aggregate 0.3 0.8 9.6 0.05 0.41 0.50 -0.05 0.42 0.23 0.25 0.32 0.98 0.91 1.00 Cash                                                        
UK Cash JPM GBI UK 3 Mon 2.1 2.5 8.9 0.08 0.22 0.03 0.43 0.01 0.63 0.56 0.57 0.03 0.11 0.01 1.00 Inflation
Linked
                                                     
Inflation Linked Bloomberg Gbl Infl Linked UK 3.3 3.9 11.1 0.02 0.60 0.46 0.51 0.33 0.52 0.61 0.60 0.18 0.33 0.21 0.62 1.00 Investment
Grade
                                                   
Investment Grade Bloomberg Sterling Agg 2.9 3.4 9.5 0.02 0.51 0.45 0.44 0.28 0.57 0.62 0.66 0.18 0.28 0.20 0.81 0.86 1.00 Cash                                                  
CANADA Cash FTSE TMX Canada 91 Day TBill 3.3 3.7 9.1 0.09 0.27 0.09 0.58 0.07 0.56 0.57 0.52 0.04 0.16 0.02 0.54 0.39 0.44 1.00 Inflation
Linked
                                               
Inflation Linked FTSE TMX Canada Real Return Bond 3.5 4.3 12.3 0.02 0.64 0.43 0.65 0.31 0.52 0.64 0.58 0.16 0.35 0.17 0.43 0.59 0.56 0.76 1.00 Investment
Grade
                                             
Investment Grade FTSE TMX Canada Universe Bond 3.9 4.3 9.4 0.07 0.51 0.42 0.64 0.31 0.57 0.65 0.63 0.18 0.32 0.19 0.50 0.53 0.57 0.91 0.89 1.00 High Yield                                            
High Yield ICE BofAML CA HY CA Issuers 6.0 6.7 12.2 0.01 0.30 0.20 0.65 0.10 0.56 0.60 0.57 0.03 0.15 0.02 0.53 0.46 0.52 0.87 0.75 0.87 1.00 Cash                                          
AUSTRALIA Cash JPM GBI Australia 3 Mon 3.2 4.0 12.4 0.03 0.42 0.23 0.58 0.11 0.71 0.69 0.67 0.11 0.26 0.10 0.57 0.50 0.55 0.73 0.72 0.75 0.74 1.00 Investment
Grade
                                       
Investment Grade Bloomberg Global Australia 3.7 4.4 11.7 0.03 0.58 0.45 0.56 0.30 0.71 0.74 0.74 0.26 0.41 0.27 0.51 0.58 0.62 0.67 0.76 0.78 0.70 0.94 1.00 Inflation
Linked
                                     
GLOBAL Inflation Linked Bloomberg Global Inflation Linked 2.9 3.2 7.6 0.03 0.81 0.64 0.54 0.47 0.72 0.85 0.83 0.32 0.51 0.36 0.56 0.87 0.79 0.50 0.75 0.69 0.56 0.65 0.76 1.00 Aggregate                                    
Aggregate Bloomberg Global Aggregate 2.7 2.9 5.5 0.07 0.70 0.74 0.38 0.55 0.75 0.83 0.88 0.62 0.70 0.65 0.44 0.65 0.68 0.43 0.62 0.65 0.49 0.59 0.75 0.87 1.00 High
Yield
                                 
High Yield Bloomberg Global High Yield 7.5 8.0 9.7 -0.07 0.42 0.29 0.97 0.32 0.53 0.63 0.57 -0.01 0.22 -0.01 0.51 0.56 0.53 0.65 0.70 0.72 0.72 0.67 0.65 0.64 0.50 1.00 United
States
                               
EQUITIES DEVELOPED MARKETS United States MSCI USA IMI 6.0 7.1 14.7 -0.08 0.16 0.01 0.72 0.03 0.39 0.43 0.38 -0.20 -0.02 -0.20 0.41 0.36 0.38 0.59 0.55 0.59 0.64 0.59 0.52 0.40 0.24 0.72 1.00 Europe                              
Europe MSCI Europe ex UK IMI 6.1 8.0 19.3 0.01 0.19 0.09 0.72 0.08 0.62 0.63 0.60 -0.11 0.06 -0.12 0.54 0.45 0.50 0.62 0.59 0.63 0.68 0.67 0.61 0.54 0.42 0.78 0.86 1.00 Japan                            
Japan MSCI Japan IMI 6.3 7.4 14.8 -0.05 0.18 0.07 0.54 0.04 0.33 0.39 0.33 0.00 0.12 -0.05 0.37 0.31 0.32 0.47 0.47 0.49 0.50 0.50 0.46 0.36 0.27 0.57 0.64 0.66 1.00 United
Kingdom
                         
United Kingdom MSCI UK IMI 7.5 9.0 17.1 -0.02 0.18 0.03 0.71 0.07 0.53 0.54 0.51 -0.13 0.03 -0.15 0.64 0.48 0.56 0.66 0.59 0.65 0.70 0.67 0.59 0.50 0.36 0.77 0.84 0.92 0.65 1.00 Canada                        
Canada MSCI Canada IMI 6.6 8.6 19.8 0.03 0.28 0.07 0.72 0.08 0.48 0.53 0.46 -0.07 0.08 -0.09 0.52 0.43 0.44 0.83 0.74 0.80 0.83 0.72 0.64 0.51 0.36 0.76 0.81 0.79 0.60 0.83 1.00 Australia                      
Australia MSCI Australia IMI 6.4 8.8 22.0 0.01 0.31 0.14 0.71 0.09 0.55 0.59 0.54 -0.06 0.11 -0.06 0.49 0.44 0.48 0.67 0.69 0.70 0.74 0.83 0.77 0.55 0.43 0.77 0.81 0.82 0.62 0.83 0.83 1.00 Developed
Markets
                   
Developed Markets MSCI World IMI 6.2 7.3 15.1 -0.04 0.20 0.05 0.75 0.05 0.50 0.53 0.48 -0.15 0.03 -0.16 0.50 0.43 0.46 0.65 0.62 0.66 0.71 0.67 0.61 0.48 0.34 0.78 0.97 0.94 0.72 0.92 0.86 0.87 1.00 Emerging
Markets
                 
EM Emerging Markets MSCI EM IMI 5.8 7.9 20.6 0.05 0.28 0.13 0.72 0.08 0.54 0.57 0.53 -0.03 0.12 -0.05 0.50 0.43 0.46 0.69 0.68 0.70 0.74 0.78 0.72 0.53 0.42 0.78 0.76 0.83 0.66 0.80 0.84 0.85 0.84 1.00 Global Equities                
GLOBAL Global Equities MSCI ACWI IMI 6.1 7.3 15.4 -0.03 0.21 0.06 0.76 0.06 0.51 0.55 0.50 -0.14 0.04 -0.15 0.51 0.43 0.47 0.67 0.64 0.68 0.73 0.70 0.63 0.50 0.36 0.80 0.96 0.94 0.73 0.92 0.87 0.88 1.00 0.88 1.00 Natural
Resources
             
REAL ASSETS Natural Resources S&P Global Natural Resources 7.3 9.4 20.5 0.05 0.21 -0.02 0.59 -0.03 0.53 0.52 0.47 -0.04 0.07 -0.07 0.52 0.37 0.40 0.71 0.61 0.66 0.70 0.72 0.63 0.46 0.33 0.66 0.73 0.77 0.61 0.84 0.88 0.82 0.80 0.81 0.82 1.00 Listed
Real Estate
           
Listed Real Estate MSCI ACWI IMI Core RE 6.8 8.5 18.3 -0.02 0.36 0.26 0.77 0.20 0.47 0.58 0.52 0.00 0.20 0.01 0.44 0.50 0.51 0.59 0.66 0.66 0.66 0.66 0.66 0.59 0.47 0.80 0.81 0.81 0.65 0.79 0.75 0.81 0.85 0.79 0.86 0.65 1.00 Listed
Infrastructure
         
Listed Infrastructure S&P Global Infrastructure 6.0 7.2 15.3 0.04 0.35 0.23 0.74 0.20 0.57 0.66 0.60 0.00 0.20 0.02 0.52 0.54 0.54 0.66 0.68 0.72 0.72 0.71 0.69 0.63 0.52 0.79 0.80 0.86 0.64 0.86 0.82 0.85 0.87 0.80 0.87 0.78 0.86 1.00 Hedge
Funds
       
ALTERNATIVES Hedge Funds HFRI Fund Weighted Composite 5.4 5.6 6.2 0.00 0.23 0.04 0.75 0.08 0.43 0.48 0.42 -0.13 0.02 -0.14 0.50 0.42 0.44 0.66 0.63 0.66 0.72 0.67 0.58 0.46 0.30 0.78 0.85 0.83 0.68 0.85 0.88 0.84 0.90 0.86 0.91 0.84 0.76 0.82 1.00 Private
Equity
     
Private Equity Cambridge Associates Global Private Equity 9.6 11.6 19.8 0.01 0.09 -0.19 0.65 -0.04 0.41 0.46 0.34 -0.21 -0.11 -0.24 0.57 0.57 0.51 0.66 0.56 0.58 0.63 0.63 0.52 0.52 0.12 0.65 0.82 0.76 0.58 0.75 0.75 0.75 0.81 0.75 0.81 0.68 0.66 0.68 0.72 1.00 Private
Credit
     
Private Credit Cambridge Associates Global Private Credit 6.5 7.1 11.0 -0.02 0.13 -0.11 0.77 0.01 0.42 0.52 0.39 -0.16 0.01 -0.18 0.62 0.67 0.61 0.73 0.63 0.67 0.77 0.71 0.59 0.61 0.20 0.77 0.80 0.79 0.59 0.80 0.82 0.79 0.82 0.78 0.82 0.68 0.78 0.77 0.71 0.88 1.00        

Forecasts listed here represent total return forecasts for primary asset classes, annualized using geometric and arithmetic averages, where applicable. Forecast returns are based on estimates and reflect subjective judgments and assumptions. They are not necessarily indicative of future performance, which could differ substantially. It is not possible to invest in an index.

IMPORTANT INFORMATION: For EMEA this material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, this information is directed to institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. The information contained herein is intended for use with current or prospective clients of Northern Trust Investments, Inc. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Northern Trust and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of Northern Trust and are subject to change without notice.

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