Susan Chan, the head of Asia Pacific at BlackRock, said the traditional 40/60 portfolio will not generate the outcomes needed for the future [1].
This shift in perspective from one of the world's largest asset managers suggests a fundamental change in how investors should approach risk and diversification. As market conditions evolve, the reliance on a static split between equities and bonds may no longer provide the stability or growth required to meet long-term financial targets.
Chan spoke during the Bloomberg Invest 2026 conference in Hong Kong [2]. She said that the traditional 40/60 mix [1] will not meet future investment outcome expectations given the current trajectory of global markets.
"The traditional 40/60 portfolio is not going to generate the outcomes needed for the future," Chan said [1].
The 40/60 model has long served as a benchmark for balanced investing, splitting assets to hedge against volatility. However, the volatility of modern markets and shifting interest rate environments have led some analysts to question the efficacy of these rigid ratios.
Chan's comments come as institutional investors increasingly look toward alternative assets and more dynamic strategies to find yield. The move away from traditional benchmarks often involves incorporating private equity, real estate, or infrastructure to diversify beyond the public markets.
By signaling that the classic model is insufficient, BlackRock is encouraging a transition toward more flexible portfolio construction. This approach seeks to adapt to macroeconomic shifts that a simple two-asset split cannot address.
“The traditional 40/60 portfolio is not going to generate the outcomes needed for the future.”
The critique of the 40/60 portfolio by a top BlackRock executive signals a broader industry trend toward 'de-traditionalizing' wealth management. By moving away from the classic equity-bond split, investors are being pushed toward alternative investments and active management to combat inflation and market volatility that historically predictable models can no longer mitigate.
