Video:Strengthen the core: Review your goals
As investors deploy cash, we believe they should first focus on building a core portfolio that delivers growth, income, and diversification.
Equities
We think investors should add to equities in 2026. A strategic equity portfolio typically allocates 30-70% of total assets, diversifies regionally (at least half in US equities, at least 20% global), and is regularly rebalanced. Allocating up to 30% to a diversified mix of structural growth strategies such as AI and power and resources could enhance return potential.
Fixed income
Investors can complement their equity allocation with a robust fixed income allocation by setting the right level (typically 15-50%), aligning with one’s currency plan, and targeting a five- to seven-year duration. To diversify income sources, investors should balance across government bonds, credit, and private credit, and consider alternative income strategies (including in equities for investors in low yield regions).
Alternatives
We believe allocating to alternatives—hedge funds, private markets, and infrastructure—can enhance diversification and risk-adjusted returns, though investors should be aware of inherent risks such as illiquidity and lower transparency.
