Key Takeaways
- Today’s market is shaped by structural volatility
- Understand where a traditional 60/40 portfolio may break down
- Explore tactical roles for private market strategies
- View sample allocations + digital implementation tools
- Learn how portfolio construction tools like Architect can help scale your pivot
Who should read this:
Anyone looking to use alternatives and tech to stay nimble in 2025
Financial Advisors
LPs
Wealth Managers
Preview what’s in the guide:
Portfolio Analysis: Sample 60/40 Portfolio vs. Sample 60/40 with Alternatives
20-year analysis: December 2004 – December 2024
Traditional 60/40 Portfolio
Expanded Portfolio with Alternatives
60% Equities
40% Fixed Income
50% Equities
25% Fixed Income
15% Private Equity
5% Private Credit
5% Hedge Fund
| Annualized Return | Annualized Volatility | Max Drawdown | Sharpe Ratio | |
| Traditional 60/40 Portfolio | 6.8% | 10.1% | 28.7% | 0.52 |
| Expanded Portfolio with Alternatives | Download the full guide to see the full expanded portfolio with alternatives | |||
Source: iCapital. Portfolio analysis is based on iCapital propriety models with data based on availability as of April 30, 2025. Equity performance is represented by the SPDR S&P 500 ETF Trust SPY (domestic) and iShares MSCI EAFE ETF EFA (all). Fixed Income performance is represented by the iShares Core U.S. Aggregate AGG. Private Equity performance is represented by the Generic Private Equity Fund GPEF. Private Credit performance is represented by the Generic Private Credit Fund GPCF. Hedge Fund performance is represented by Generic Multi-Strategy Hedge Fund- GMSHF. Please see “Index Definitions” in the “Important Information” section of this presentation for additional information. For illustrative purposes only. Portfolio analysis does not reflect an actual trading program and no investor actually achieved the performance shown. Past performance is not indicative of future results. Future results are not guaranteed.
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IMPORTANT INFORMATION
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This website is for informational purposes only. This website is the property of iCapital and may not be shared, reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This website and any information included on it are not intended, and may not be relied on in any manner, as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. Financial products, including investment funds and structured investments, are complex and may be speculative and are not suitable for all investors. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This website and the information contained on it is not intended to, and does not, address the financial objectives, situation or specific needs of any specific investor.
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
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