7YearAssetClassRealReturnForecasts*

AsofFebruary29,2016

STOCKS

BONDS

OTHER

10%

AnnualRealReturnOver7Years

8%
6%

4.6%

4.8%

6.5%Longterm
HistoricalU.S.
EquityReturn

4%
2.4%
2%

0.8%

1.1%

1.5%
0.2%

0%
0.2%
2%

1.2%

0.3%

1.7%

4%

3.4%

6%
U.S.
Large

U.S.
Small

U.S.High
Quality

Intl
Large

Intl
Small

Emerging

U.S.
Bonds

Intl
Bonds
Hedged

Emerging
U.S.
Debt
Inflation
Linked
Bonds

U.S.
Cash

Timber

Source:GMO
*ThechartrepresentsrealreturnforecastsforseveralassetclassesandnotforanyGMOfundorstrategy.TheseforecastsareforwardlookingstatementsbaseduponthereasonablebeliefsofGMOand
arenotaguaranteeoffutureperformance.Forwardlookingstatementsspeakonlyasofthedatetheyaremade,andGMOassumesnodutytoanddoesnotundertaketoupdateforwardlooking
statements.Forwardlookingstatementsaresubjecttonumerousassumptions,risks,anduncertainties,whichchangeovertime.Actualresultsmaydiffermateriallyfromthoseanticipatedinforward
lookingstatements.U.S.inflationisassumedtomeanreverttolongterminflationof2.2%over15years.
Proprietaryinformation notfordistribution.Copyright2016byGMOLLC.Allrightsreserved.