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Market snapshot

The EV Asset Model is empirically based and entirely data-driven. It has a calibration process that determines, from historical information, the parameters that describe how scenarios evolve and an update process that configures it for prevailing market conditions to set the starting point for projections. The market snapshot sets these market conditions for each update.

Model inputs

The table shows inputs to the EV Asset Model for the current and previous update.

  2021Q1 2021Q2
Interest rates    
UK 6-month government par yield -0.19% -0.09%
UK 5-year government par yield -0.04% 0.42%
UK 15-year government par yield 0.52% 1.21%
US 3-month government par yield 0.16% 0.08%
US 5-year government par yield 0.36% 0.93%
US 20-year government par yield 1.39% 2.25%
EU 1-year government par yield -0.76% -0.69%
EU 5-year government par yield -0.76% -0.64%
EU 15-year government par yield -0.39% -0.02%
JP 1-year government par yield -0.13% -0.13%
JP 5-year government par yield -0.12% -0.10%
JP 15-year government par yield 0.02% 0.09%
Equity    
UK dividend yield 4.13% 4.30%
US dividend yield 1.89% 1.74%
EU dividend yield 3.20% 3.27%
JP dividend yield 2.38% 2.34%
EM dividend yield 2.81% 2.75%
AP dividend yield 2.80% 2.68%
Inflation    
UK RPI year-on-year inflation 0.86% 1.37%
UK CPI year-on-year inflation 0.37% 0.46%
US year-on-year inflation 1.17% 1.68%
EU year-on-year inflation -0.42% 0.83%