Are Higher Fixed Income Allocations Warranted Today?

In this note, we compare the equity/fixed income efficient frontier of today with that of 2021. We find that higher bond allocations may help investors pursue long-term return objectives with lower risk.

White ripples


20 min read


Fixed Income

Key takeaways

  • The efficient frontier for bond/equity portfolios has shifted northeast from December 2021 to August 2023.
  • This shift is due to higher expected cash returns and higher expected returns and volatility for risk assets.
  • We conclude that a greater reliance on bonds is warranted for a range of desired investor outcomes on a go-forward basis.