I've been wondering about this for a bit and it getting mentioned on the performance thread triggered this post. For those of you who are using Risk Profiles, I'm curious what the mix is within the profile you are using? About three years(?) ago, Goldman Sachs changed their risk profiles and shifted the entire spectrum to be more conservative.
Their riskiest profile is called "Higher Risk" and here is the breakdown:
Has anyone seen the riskiest profile with that much Fixed Income in it? That seems abnormally high but I don't recall their thinking behind this.
Their riskiest profile is called "Higher Risk" and here is the breakdown:
- Investment Grade Fixed Income - 17.50%
- US Large Cap Equity - 49.50%
- US Small Cap Equity - 7.50%
- Non-US Global Equity - 20.50%
- Income Oriented Equity - 3.50%
- Alternative Style / Hedge Funds - 1.50%
Has anyone seen the riskiest profile with that much Fixed Income in it? That seems abnormally high but I don't recall their thinking behind this.