Building a More Balanced Portfolio

Executive Summary:

Based on a changing definition of risk combined with diminished expectations around the future economic environment, the 60% stock and 40% bond (60/40) portfolio may no longer be the most efficient asset allocation mix
While the 60/40 has worked in the past, it is likely to fall short of meeting client needs going forward and the mix of only two asset classes may call into question truly how diversified this portfolio is for investors
Portfolios can achieve better risk-return optimization through the inclusion of private commercial real estate (CRE), a multi-dimensional asset class with the potential for attractive returns, enhanced income, diversification, and inflation protection benefits
Building a more balanced portfolio of stocks, bonds, and private CRE can help to achieve a more efficient frontier and can lead to more successful financial outcomes for investors