Change is an inevitable feature of markets. For us to provide the most realistic picture of the future for our clients we need to change too. We regularly update our asset model, Insight, to provide the most-likely range and level of asset returns.
Our model is based on simulating the evolution of the state of the market and economy. To do this we use observations of market prices, such as interest rates, to determine the starting point of the simulation.
We currently run these updates on a quarterly basis as this has proven to be the best trade-off between the value of an update, and the potential cost to our users of updating.