Financial Strategies for Today: Mixed Asset and 60/40
6 July 2026
To all Financial Friends
I write these words on the morning after England scored three goals against Mexico to secure their place in the quarter-finals of the World Cup. England overcame the odds against them to win their victory. Many of our students have won through against the odds and achieved good returns on their investments.
Just two weeks ago, three of my students reported goals of a different kind through investing.
One student saw her pension fund grow from £50,000 to just over £100,000 in less than three years.
Another began investing only £150 per month, adding occasional extra sums when she could. From March 2025 to May 2026, her investments produced £750 of pure profit, while the money she had saved remained intact, together with a further gain of £647.
A third student, who had never invested a penny before, achieved a return of 28.2% in just two and a half months through investments in defence and technology funds. In simple terms, £1,000 would have grown to £1,282 over that short period.
These are exceptional results and should not be regarded as typical. Yet they do reflect something of the age in which we live. The world has changed rapidly in recent years, and the world of money appears to be changing with it. Some investments can rise in value with surprising speed, though experience teaches us that values can fall just as quickly. Profit is never guaranteed, and caution remains as important as ever.
Even so, it is encouraging to see ordinary people gaining confidence in an area that many once regarded as beyond their understanding. Knowledge does not remove risk, but it can help us to recognise opportunity when it appears. Most students have achieved acceptable returns in recent times. Should this not be the case for you, then please click this link www.calendly.com/yourfinancialfriend and talk with me for some updated information and guidance.
My last commentary to you discussed the performance of the "Go for Growth" strategy.
Today We Will Look at the Mixed Asset and 60/40 Model
The 60/40 model is the traditional investment model used by financial advisers across many years. Balancing the holdings 60% into equities and 40% into fixed interest bonds, the model worked well for many years. In our commentaries we have stressed my concern that the fixed interest bond market is proving to be less safe than in the past. Several students, working with IFAs, will find their funds still held in this 60/40 split. However, the industry is waking up to the uncertainty of this model continuing to work well.
The 60/40 model is a Mixed Asset structure but there are Mixed Asset funds where the fund manager decides on his own asset holdings. One of the better performing Mixed Asset funds, over the last 5 years, has achieved an annual compound growth rate of 5.9% pa. A less successful fund has received a return of just 2.02% pa over the last 5 years. Our commentaries have previously suggested that Mixed Asset funds generally provide returns of 4% to 7% pa over time. Do it yourself investors and proactive financial advisers frequently achieve returns of between 7% and 12% pa on average.
Our next commentary regarding strategies that numbers of our students use will report on the Profit Takers Model and the Accumulation Model.
Abnormal Normality
The world of investment seems to have got used to the considerable geopolitical risks which are continuing. We have said that it is this very uncertainty that is enabling students to frequently make good, short-term profit. We can see this in the first paragraph of this commentary.
In my years of giving financial advice, I would always advise that investment was for the long-term, so do not invest with less than a 5 to 7 year time-scale in mind. In these current days, it would be irresponsible to ignore, and fail to benefit from the short-term profits available. Maybe one day, abnormality will fade away and long-term prudency will become normal once again?
Here in the UK, Andy Burnham is seen as the likely new Prime Minister. Politically, he is to the left in his thinking with the potential to borrow more money to support welfare programs. With the need to pour more money into defence, as well as support welfare programs, increased borrowing adds to my concern for the perception that the fixed interest bond market might not remain as safe to protect investors monies when the equity market falls. Again, my personal view is that specific assets should be considered ahead of markets falling.
Despite the geopolitical risks, markets have performed remarkably well. It would seem that the exuberant confidence in AI and technology has carried markets forward despite the deep uncertainties in the world around. Whilst the strength of the technology "magnificent seven" companies is financially strong, there remains concerns that valuations of these companies have risen too quickly. Investors are worried that this realisation could cause a collapse in share prices which would lead to a strong correction or equity market collapse.
Information and Guidance
As is always the case, always feel free to use this Calendly link: www.calendly.com/yourfinancialfriend to book a time to update and talk with me and get the clarity you need for your ongoing investment decisions. Always glad to hear from you and ready to help.
Commentaries that you read in the financial press or here are not advice. Commentaries seek to provide accurate information and offer comparative insights. Our commentaries clarify and make you aware of your options and choices. What you could do, not what you should do. Information and guidance allows you to come to your own conclusions.
PLEASE NOTE: A financial or economic commentary like these, are written to explain, interpret or give an opinion on economic events and markets to help readers understand what’s happening and why it matters. Designed to help you make informed decisions of your own by making you aware of opportunities, risks and potential rewards in the market.
