Below we have outlined performance statistics for different asset allocations spanning from 100% Equity to 100% Fixed Income. This analysis is for illustrative purposes only, but demonstrates the impact of asset allocation on portfolio performance.
DISCLOSURES:
This Risk/Reward analysis is presented for informational purposes to assist with investment planning. The numbers included do not represent an actual or a model client portfolio, but rather index performance for each allocation based on index returns from January 1, 2004, through December 31, 2023. An individual investor cannot invest directly in an index. Index returns do not include fees or expenses. Generally, the higher the allocations are to equities the greater the risk. Best and worst 12-month periods are the periods of 12 consecutive calendar months with the highest and lowest cumulative return, respectively.
Past performance is not a guarantee of future results. The value of investments held in a portfolio will increase or decrease in value in response to many factors including economic and financial events, world events such as wars and pandemics, regulatory developments, and events that affect the behavior and perceptions of investors. Different types of securities will experience different levels of risk/market volatility over time.
CRSP US Total Market Index is a broad-based equity index designed to represent 100% of the US investable equity market. It includes more than 3,500 companies across all capitalization sizes.
FTSE Global All Cap ex US Index is a broad-based equity index designed to represent 98% of the investable equity markets outside the US. It includes more than 8,000 companies across
all capitalization sizes.
Bloomberg US Universal Bond Index covers USD-denominated, taxable bonds that are rated either investment grade or high-yield and includes over 20,000 securities.
Bloomberg Global Aggregate ex USD Index is a measure of investment grade debt from 24 local currency markets designed to reflect the non-US investable investment grade fixed income market.
The information contained herein does not constitute investment advice or a solicitation. This article is for dissemination of general information only. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results.