Three pie charts show asset allocations across different scenarios.
The allocation in chart 1, based on a soft landing and a neutral rate of 3.5%, is as follows:
U.S. equities: 36%
Global ex-U.S. equities (unhedged): 24%
Global ex-U.S. aggregate bonds (hedged): 8%
U.S. short-term Treasury: 2%
U.S. long-term Treasury: 18%
U.S. credit: 12%
The allocation in chart 2, based on a hard landing and a neutral rate of 3.5%, is as follows:
U.S. equities: 30%
Global ex-U.S. equities (unhedged): 20%
Global ex-U.S. aggregate bonds (hedged): 16%
U.S. long-term Treasury: 24%
U.S. credit: 11%
The allocation in chart 3, based on a neutral rate of 2.2%, is as follows:
U.S. equities: 44%
Global ex-U.S. equities (unhedged): 30%
Global ex-U.S. aggregate bonds (hedged): 5%
U.S. long-term Treasury: 10%
U.S. credit: 10%