Capital Market Assumptions

Asset	Asset Class	Expected Geometric Return	Expected Arithmetic Return	Expected Volatility	Expected Sharpe Ratio
Fixed Income	Fixed Income
Cash	Fixed Income	3.77	-	-	-
US Treasury Bonds	Fixed Income	4.04	4.15	4.67	0.09
US Long Treasury	Fixed Income	3.85	4.4	10.53	0.06
Global Treasury Bonds Hedged	Fixed Income	4.18	4.41	6.77	0.1
US Aggregate Bonds	Fixed Income	4.34	4.5	5.62	0.13
Global Aggregate Bonds Hedged	Fixed Income	4.22	4.39	5.77	0.11
US Investment Grade Bonds	Fixed Income	4.84	5.07	6.77	0.2
US High Yield Bonds	Fixed Income	5.42	5.78	8.53	0.24
US TIPS	Fixed Income	4.31	4.47	5.75	0.13
Equities	Equities
US Equities	Equities	6.56	7.74	15.34	0.26
US Small Cap	Equities	7.06	9.01	19.72	0.27
UK Equities Unhedged	Equities	8.42	10.06	18.1	0.35
Europe ex UK Equities Unhedged	Equities	7.9	9.4	17.32	0.33
Japan Equities Unhedged	Equities	8.63	10.73	20.5	0.34
Developed International ex US Equities Unhedged	Equities	8.44	9.72	16.03	0.38
EM Equities Unhedged	Equities	9.24	12.07	23.77	0.35
Global Equities Unhedged	Equities	7.27	9.31	20.23	0.28
Real Assets	Real Assets
US REITs	Real Assets	6.46	8.02	17.68	0.25
Developed REITs Unhedged	Real Assets	7.1	9.46	21.73	0.27
Commodities	Real Assets	5.15	6.24	14.72	0.17
Private Assets	Private Assets
US Private Real Estate - Core	Private Assets	5.82	6.79	13.97	0.22
US Private Real Estate - Opportunistic	Private Assets	6.64	8.33	18.42	0.25
US Private Debt - Mezzanine	Private Assets	5.55	6.15	10.96	0.22
US Private Equity - Buyout	Private Assets	8.04	9.97	19.69	0.32
US Private Equity - Venture Capital	Private Assets	9.72	12.94	25.4	0.37
60/40 Portfolio	60/40 Portfolio	6.47	7.34	13.22	0.28

Source: PGIM Quantitative Solutions as of 6/30/2023. Forecasts may not be achieved and are not a guarantee or reliable indicator of future results.

Asset Class	Income Focused	Balanced Income and Growth	Growth Focused
Equities	0.3	0.55	0.7
U.S. Large Cap	0.2	0.35	0.4
U.S. Small Cap	0.02	0.03	0.08
International ex U.S.	0.05	0.12	0.15
Emerging Markets	0.03	0.05	0.07
Fixed Income	0.6	0.35	0.2
U.S. Aggregate	0.5	0.3	0.1
U.S. Investment Grade	0.08	0.03	0.03
U.S. High Yield	0.02	0.02	0.07
Real Assets	0.1	0.1	0.1
TIPS	0.06	0.03	0.02
U.S. REITS	0.02	0.04	0.05
Commodities	0.02	0.03	0.03
Expected Geometric Return	0.0565	0.065	0.0703
Expected Standard Deviation	0.0707	0.1001	0.1241
Expected Sharpe Ratio	0.3016	0.3236	0.3252

Source: PGIM Quantitative Solutions as of 6/30/2023. For illustrative purposes only. The asset allocations are hypothetical and should not be construed as investment advice. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There is no guarantee strategies will be successful. Forecasts may not be achieved and are not a guarantee or reliable indicator of future results.

Asset Class	Income Focused	Balanced Income and Growth	Growth Focused
Equities	0.31	0.545	0.669999999
U.S. Large Cap	0.15	0.3	0.35
U.S. Small Cap	0.04	0.035	0.06
International ex U.S.	0.07	0.14	0.169999999
Emerging Markets	0.05	0.07	0.09
Fixed Income	0.57	0.335000001	0.210000004
U.S. Aggregate	0.47	0.325	0.15
U.S. Investment Grade	0.06	0.01	0.010000004
U.S. High Yield	0.04	0	0.05
Real Assets	0.12	0.12	0.119999986
TIPS	0.040000001	0.03	0.01
U.S. REITS	0.039999999	0.04	0.06
Commodities	0.04	0.05	0.049999986
Expected Geometric Return	0.0592	0.0663	0.071
Expected Standard Deviation	0.0755	0.101	0.122
Expected Sharpe Ratio	0.3236	0.3339	0.3344

PGIM Quantitative Solutions Q3 2023 10-Year Capital Market Assumptions