The 60/40 portfolio was a solution for a specific macro regime that has since passed. As correlations, valuations and market structures have permanently shifted, so too must allocation frameworks.

We believe that the 50/30/20 model — encompassing equities for growth, bonds for contractual cash flows and alternatives for correlation-adjusted alpha — is the superior path to long-term wealth accumulation.

As the chart from BlackRock shows, achieving a target return of 7% now requires private market exposure, as public equity and fixed income assumptions cluster below that threshold. (For illustrative purposes only. Past performance does not guarantee future returns.)

Download the white paper and learn more about:

• A portfolio built for a world that no longer exists: the macro shift that could change the 60/40
• Why bonds are less reliable as a hedge: the inflation threshold that flips equity-bond correlation
• Why staying public could mean staying behind: the opportunity set traditional models can't reach
• Why 20% can do lots of heavy lifting: the alternatives allocation can potentially change the return profile
• Why access is everything in private markets: the selection edge that makes the difference

Behind the 50/30/20 thesis is a body of evidence that has been building for years. This research organises it systematically, from the macro conditions that might ended the 60/40 era to the return data that makes the alternative compelling.

Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. Private equity is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility. Please see https://www.moonfare.com/disclaimers.