Alternatives

Incorporating Alternatives in a 60/40 Portfolio

Developing a balanced 60/40 portfolio that incorporates alternatives.
The Challenge

The Client

A Registered Investment Advisor considering incorporating alternatives into 60/40 portfolios.

The Objective

Provide the client with resources and support to develop a balanced 60/40 portfolio that incorporates alternatives and is aligned to the investor’s goals.

Our Assignment
  • Create a detailed analysis of our client’s existing portfolio, leveraging our specialists’ expertise across portfolio management and alternatives.
  • Provide education on the full suite of our alternatives strategies, and how they can align to the portfolio’s characteristics and complement the client’s objectives.
  • Develop a balanced 60/40 portfolio that considers alternatives’ sources of funding, management of uncalled capital, return and risk profile, and provides diversification and resiliency.
Our Solution

A Balanced 60/40 Portfolio with Alternatives

We supported the client in developing a 60/40 portfolio that diversifies from the traditional stock bond portfolio in inflationary markets by incorporating alternative investments.

The Outcome

Diversified the 60/40 Portfolio

Incorporating the appropriate alternative investments into a traditional 60/40 portfolio provided the investor with a balanced and diversified investment allocation.

Aligned with Portfolio Characteristics and Objectives

The advisor’s client portfolio incorporated alternative asset class investments that best fit their goals. Our specialist team worked with the advisor to understand what the end investor was seeking to achieve and aligned the portfolio allocation to specific alternative investments that aligned to the client’s objectives.

The cited case studies represent examples of how we have partnered with various institutional clients on a broad range of services and offerings. The experiences outlined in the case studies may not be representative of the experience of other clients. The case studies have not been selected based on portfolio performance and are not indicative of future performance or success. This is not a testimonial for Goldman Sachs Asset Management’s advisory services.