Why Portfolios Need to Move Beyond the 60/40
As markets evolve, so too should model portfolios.
Today's macro environment has exposed the limitations of the traditional 60/40 portfolio, particularly its reliance on bonds as a consistent counterbalance to equities. Correlations between these two traditional asset classes have risen meaningfully, reducing the diversification benefits that once anchored the 60/40.
Rolling 24 Months Stock-Bond Correlation
A Larger Investment Universe
While public markets have become more concentrated, the universe of high-quality private companies is vast and growing, offering a broader set of potential investment opportunities.
Evolving Access to Private Markets
As today’s investors seek access to differentiated alternative solutions, new evergreen private market structures have evolved to help meet this need.
Need for Tailored Strategies
A broader toolkit allows for more precise portfolio construction. Integrating alternatives enables you to build outcome-oriented portfolios designed to meet specific goals.
Data as of September 30, 2025. Source: Bloomberg, KKR Global Macro & Asset Allocation analysis. Past performance is no guarantee of future results.
Model Portfolios with Private Markets: A Framework for Driving Portfolio Outcomes
Asset allocation model portfolios that move beyond traditional 60/40 stock-bond exposure can provide access to a broader range of return sources and position portfolios to align with desired investment outcomes. Explore our model portfolios framework for integrating private market alternatives as a starting point on your journey.
Capital Preservation Portfolio
Increase stability of returns while providing inflation hedging benefits
Income Portfolio
Increase income potential while maintaining liquidity
Growth Portfolio
Boost long-term growth and capital appreciation potential
Redefining Performance in a New Market Regime
In an era of higher inflation and stock-bond correlation, traditional public-only blends often reach a performance ceiling. Our optimized framework for model portfolios seeks to break through this limit, utilizing the illiquidity premium of private markets to enhance yield and stabilize capital growth.
Asset Class Return and Volatility Expectations
Built on Experience. Focused on Wealth.
For 50 years, KKR has partnered with the world’s leading institutional investors. Today, we extend that same investment expertise to the global wealth market—helping advisors unlock private markets to drive stronger long-term outcomes for their clients.
Institutional Access, Built for Individuals
Eligible individual investors gain access to private market strategies managed by our experienced investment teams—investing alongside our institutional products.
Clarity and Confidence in Private Markets
Education, market perspectives, and a scalable asset allocation framework help turn insight into action and achieve better portfolio outcomes for clients.
A Trusted Partnership and Shared Success
Built on collaboration and alignment with client objectives, this partnership empowers advisors and drives shared success and enduring value for investors.
