Instead of a narrow “60/40 portfolio,” pension funds, endowments and registered investment advisors (RIAs) can work with their clients, use the $400 trillion investable market portfolio and optimize allocations based on their expected returns and risk tolerance (volatility). The investable market portfolio includes equities, bonds and other fixed-income products such as loans, high-yield, municipal bonds, listed real estate (REITs) and alternatives, notably private equity and hedge funds.