Re-thinking the balanced portfolio in a low-yield world
A similar performance outcome would be a tough act to follow in the future
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THE balanced portfolio is a classic portfolio adopted by many individual and institutional investors as a benchmark model for long-term wealth management.
Fundamentally, the balanced portfolio has a broad-asset allocation of 50 per cent in equities and 50 per cent in fixed income. Some variations do exist including the addition of alternative asset classes such as real estate and private equity.
The portfolio has been tested by numerous crises including the 1997 Asian Financial Crisis, the 2001 Dotcom crash, the 2008 Global Financial Crisis and not forgetting, the Covid-19 pandemic in 2020.
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