As equities outperform bonds, they take a greater share of the portfolio.
Volatility of yearly returns: 9.98%
The balanced portfolio that is rebalanced regularly outperformed all others during this time period (January 2000–May 2019).
Sources: Morningstar Direct and Wells Fargo Investment Institute; as of May 31, 2019. Performance results for the Moderate Growth and Income Four Asset Group portfolio without private capital (PC); and 60% S&P 500 Total Return Index, 40% Bloomberg Barclays Aggregate Index portfolios are hypothetical and are presented for illustrative purposes only.
Performance results for the Four Asset Group without private capital and the 60/40 portfolios are hypothetical and for illustrative purposes only. Hypothetical results do not represent actual trading. The indices reflect the historical performance of the represented assets and assume the reinvestment of dividends and other distributions. Index returns reflect general market results and do not reflect actual portfolio returns, the experience of any investor, or the impact of any fees, expenses, or taxes applicable to an actual investment. Because the HFR indices are calculated based on information that is voluntarily provided their actual returns may be higher or lower than those reported. Unlike most asset class indices, HFR Index returns reflect deduction for fees and expenses. An index is unmanaged and not available for direct investment. Hypothetical and past performance does not guarantee future results. Please see the end of the report for the risks associated with the representative asset classes and the definitions of the indices.
Moderate Growth and Income Four Asset Group model portfolio without private capital: 3% Bloomberg Barclays 1–3 Month Treasury Bill Index, 11% Bloomberg Barclays U.S. Aggregate Bond Index (5–7Y), 6% Bloomberg Barclays U.S. Aggregate Bond Index (10+Y), 6% Bloomberg Barclays U.S. Corporate High Yield Bond Index, 3% JPM GBI Global ex.-U.S., 5% JPM EMBI Global, 20% S&P 500 Index, 8% Russell Midcap® Index, 6% Russell 2000® Index, 5% MSCI EAFE Index (USD), 5% MSCI EM Index (USD), 5% FTSE EPRA/NAREIT Developed Index, 2% Bloomberg Commodity Index, 3% HFRI Relative Value Index, 6% HFRI Macro Index, 4% HFRI Event-Driven Index, 2% HFRI Equity Hedge Index.