Importance of Asset Allocation: Sub-Asset Class Contributions

The asset classes included in our asset allocation models are selected for the contributions they are expected to make to the overall portfolio. To further enhance diversification opportunities, broad asset classes are divided into sub-asset classes. The selected sub-asset classes, and their expected portfolio contributions, are summarized below.

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Generally, more conservative asset allocation models have higher bond allocations with smaller stock allocations, while more aggressive asset allocation models have higher stock allocations with minimal bond allocations.