Is the 60/40 portfolio dead or alive?

Returns and less volatility potential, and why bonds are critical to portfolio construction today, is analyzed by Harris Associates.

Changes in market dynamics during the past decade called into question the effectiveness of a 60/40 portfolio. A closer look at volatility levels and returns by Bill Nygren, CFA®, CIO-US, Portfolio Manager, and Adam Abbas, Head of Fixed Income, Portfolio Manager, at Harris Associates, adviser to the Oakmark Funds, shows why this asset allocation mix of equity and fixed income is alive and well.

Video highlights:
  • How much less is the volatility in a 60/40 blended benchmark
  • New bond regime refreshes fixed income’s role in 60/40
  • Three objectives of bonds in a 60/40 portfolio today
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of January 17, 2024 and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.

There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.

Natixis Distribution, LLC (Member FINRA|SIPC) is a marketing agent for the Oakmark Funds, a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.