A 60/40 "balanced" split will fail superannuants of the 2020s

Robert Prugue | Callidum Investment Research  | 22 August 2019 | 0.25 CE

Actuaries tell us that a "balanced" fund is one which has a long-term return objective of CPI+2% (or 3)%; a risk profile of a negative return in 1 in 7 years; and, a maximum draw down of 10% in any one year. Yet somehow the optimal growth/defensive asset split from the 1980s is still considered "balanced" today - never mind that for the first time sinc...