Ibbotson Asset Allocation Models

Ibbotson Associates provides the asset allocation guidelines consisting of U.S. Equity, International Equity, Fixed Income and Cash. The Sector allocations are intended to fulfill the U.S. Equity Portion of the aggregated portfolio. The relevant asset classes/sectors and benchmarks are displayed in the tables below. The portfolios span the risk spectrum of the efficient frontier from conservative to aggressive. In formulating diversified portfolios, Ibbotson employed a statistical technique know as optimization. The goal of optimization is to identify portfolios that maximize return for a given level of risk or minimize risk for a given level of return.


Aggregate Asset Allocation

Aggregate Asset Allocation
Total 100.00% 100.00% 100.00% 100.00% 100.00%

U.S. Equity Sector Allocation

U.S. Equity Sector Allocation
Total 100.00% 100.00% 100.00% 100.00% 100.00%

Asset Classes and Benchmarks

Asset Class Benchmarks*  
Consumer Discretionary S&P 500 Consumer Discretionary Sector  
Consumer Staples S&P 500 Consumer Staples Sector  
Energy S&P 500 Energy Sector  
Financials S&P 500 Financials Sector  
Health Care S&P 500 Healthcare Sector  
Industrials S&P 500 Industrials Sector  
Materials S&P 500 Materials Sector  
Real Estate S&P 500 Real Estate Sector  
Technology S&P 500 Information Technology Sector  
Utilities S&P 500 Utilities Sector  
International Stocks MSCI EAFT Trust  
Domestic Bonds Barclays Capital Bond Index  
Cash Equivalents Citi group U.S. Domestic 3 Month T- Bil  

Asset allocation cannot assure a profit or protect against a loss.

*Ibbotson Associates also uses MSCI World Index, Ibbotson Associates long-Term U.S. Government Bond Series, Several CRSP Deciles and CFI (Coleman, Fisher and Ibbotson) Synthetic Bonds to aid in determining the inputs.

© Ibbotson Associates, Inc.