Blanc WM · Portfolio Framework · May 2026

Beat the Index.
Defend the Drawdown.
Compound Through Cycles.

Five years of the Blanc House View versus the global standard 60/40 — measured, compared, defended.

PORTFOLIO ALLOCATION FRAMEWORK
Blanc WM — Global Standard vs House View — May 2026
CAGR19.2%
Sharpe0.82
5y DD−28%
Edit mode ON · click any text to edit · changes autosaved
Saved

Export edits

Copy this JSON. Save it alongside the source HTML to preserve edits, or paste into a generator script to bake them in.

ⓘ Framework Overview — Two Allocation Philosophies
▼
Two reference portfolios: the Global Standard (60/40 ACWI + AGG), the textbook diversified mandate, vs the Blanc House View, a high-conviction 90/10 tilt toward US equities, AI/semis themes, and a real-asset hedge sleeve. The contrast captures the strategic question every HNW client asks: track the index, or take a view.

Global Standard (Julius Baer / private-bank default). 60% global equities via ACWI (cap-weighted, ~70% US / 30% non-US) and 40% USD investment-grade bonds via AGG. Beta-1, fee-efficient, low maintenance. Captures the historical 60/40 premium with a Sharpe near 0.6 and a drawdown profile dominated by equity beta. Suitable as a benchmark and as the default sleeve for unbiased mandates.

Blanc House View. 90% equities, of which roughly 78% US / 22% international, plus 10% real assets. Within US, the dominant exposures are Tech (25%) and the AI Revolution sleeve (25%), supplemented by broad VOO (15%) and cyclical/infrastructure overlays (5%). No core bond allocation — duration risk is replaced by structured-credit and barrier sleeves that pay 9–10% p.a. with buffers. The thesis: secular US productivity acceleration via AI + persistent commodity scarcity outweighs the diversification premium of a global cap-weighted basket.

What changes vs the standard. Higher equity beta and concentration risk, no bond ballast, real-asset hedge against monetary debasement, optional yield enhancers (CLNs, buffer ETFs, accelerated arbitrage notes) deliver smoothed pay-offs without sacrificing equity participation. The portfolio is designed to outperform 60/40 in expansion / mid-cycle regimes and to defend via buffer ETFs and gold in a sharp drawdown — but it will underperform in a classic stagflation or duration rally.

5y CAGR
19.2%
vs 60/40 · 7.8%
5y Total Return
+140.0%
+94pp alpha vs benchmark
Sharpe (rf 4%)
0.82
2.2× benchmark · 0.37
Max Drawdown
−27.6%
vs benchmark · −21.5%
Equity80%
US tilt76%
Real Assets8%
Buffer Overlay10% PJUL
Credit Overlay10% CLN+Barrier

Performance.

Five-year backtest: cumulative growth, drawdown profile, and risk-adjusted metrics versus the 60/40 global standard.

📈 5-Year Performance — Cumulative Growth
May 2021 → May 2026 · Annual rebalance · USD total return · NAV base 100
Blanc View
60/40 Global Standard
MetricBlanc View60/40DeltaEdge
📉 Drawdown Analysis
Peak-to-trough · Buffer + credit overlay impact
Blanc View
60/40 Global Standard
📌 Key Findings
◆+94pp total return over 5y (Blanc 140.0% vs benchmark 45.7%) — driven by 2023–24 AI cycle and US large-cap dominance. AI sleeve 4×6.25% (DRAM/SOXX/AIS/POW), leveraged-tech via QLD.
◆Sharpe 0.82 vs benchmark 0.37 — 2.2× risk-adjusted return. Vol 18.6% (vs 10.3%).
◆−27.6% peak drawdown in 2022 (vs benchmark −21.5%). 10% buffer overlay (PJUL) and 10% structured-credit sleeve (CLN Nestlé 9.5% / CLN Glencore 7% / barrier note 9.5%) accrue coupon and cap losses while equity beta rotates lower.
◆Backtest substitutes proxies for short-history ETFs: SOXX←DRAM, QQQ←AIS, GRID←POW, COPX/LIT/URA blend ← SETM. Credit overlay synthesised from coupon accrual (no realised credit events 2021–26) + barrier-note delta to VOO.

Allocation.

Top-level asset class split, sleeve composition, and the strategic differences from the cap-weighted global benchmark.

◆ Top-Level Allocation
Equity · Bonds · Real Assets
Global Standard
Blanc House View
📌 Key Differences
House view vs standard
◆+30pp equity vs standard — concentrated in US thematics, not cap-weighted ACWI.
◆-40pp bonds — duration replaced by structured credit + buffer ETFs paying 9–10% p.a.
◆+10pp real assets — explicit inflation/debasement hedge; standard has zero.
◆US thematic tilt: Tech + AI = 50% of total NAV vs ~20% in ACWI weighting.

Holdings.

Position-level detail: start weight, 5-year CAGR, year-to-date drift after annual rebalance — both portfolios.

◆ Per-Position Breakdown — Blanc View
Final NAV 240.0 · Start weight · 5y CAGR · End weight (annual rebal, drifted YTD) · click any header to sort
TickerSleeveW₀CAGR (5y)W₁Drift
◆ Per-Position Breakdown — 60/40 Benchmark
Final NAV 145.7 · 3-position global standard · click any header to sort
TickerSleeveW₀CAGR (5y)W₁Drift
📊 Blanc View — Sleeve Detail
Tickers and rationale per bucket
Tech Core
20%
Broad US technology beta. Cap-weighted (XLK 12.5%) + 2× daily Nasdaq-100 (QLD 7.5%) for momentum windows.
XLKQLD
AI Revolution
25%
Pure-play AI infrastructure + compute + power. Memory cycle (DRAM), semis chokepoint (SOXX), AI Supercycle broad basket (AIS), Electrification (POW) at 6.25% each. Tactical overlays: single-name notes on Neo-clouds (NBIS, IREN).
DRAMSOXXAISPOW NBISIREN
Broad US + Buffer Overlay
15%
S&P 500 cap-weighted (VOO 5%) anchor + buffered-equity overlay (PJUL/QTOC/XTOC/QTJA/XTJA, 10%) — 9% downside floor with ~14% upside cap. The core risk-reduction lever in the portfolio.
VOO QTOCXTOCQTJAXTJA
Cyclicals + Infra
5%
Late-cycle industrial / materials / US infrastructure (BBB tailwind).
XLIXLBPAVE
International
17%
Ex-US developed (VXUS 7%), EM beta (EEM 8%), global infrastructure (IGF 2%). Optional satellites: LatAm (ILF), Israel tech, OTP Hungarian financials.
VXUSEEMIGF ILFEISOTP
Real Assets
8%
Monetary debasement + energy transition hedge. SETM 3.5% (Sprott Energy Transition Materials — Cu/Li/Ni/U basket), GLD 3% (precious metals proxy), URA 1.5% (standalone uranium tilt — best 5y performer in real assets at 26% CAGR). BTC optional for higher-risk-tolerance clients.
SETMGLDURA BTC
Credit Overlay
10%
Defensive-yield sleeve. CLN Nestlé 9.5% (4%) and CLN Glencore 7% (3%) — credit-linked notes on investment-grade issuers, coupon accrues so long as no credit event triggers. Barrier note 9.5% (3%) — autocallable on VOO with European −35% barrier; coupon paid while underlying stays above the floor. Sleeve realised CAGR ≈ 9.6% with vol < 4% over the 5-year window, anchoring portfolio Sharpe at 0.82 and capping MaxDD at −27.6%.
CLN NESTLÉ 9.5%CLN GLENCORE 7%BARRIER 9.5%

Instruments.

Risk-spectrum overlays: structured-credit and barrier sleeves for defensive yield, levered and active mandates for explicit volatility budget.

■ Instrument Overlays — Risk Spectrum
Choose payoff profile, not just exposure
Safer Sleeve — Yield with Buffers
DEFENSIVE
Structured-credit and capital-protected wrappers. Capture coupon / buffered upside while limiting downside.
InstrumentUnderlyingProfile
CLN on ratesNestlé creditCoupon 9.5%
CLNGlencoreCoupon 7%
Barrier noteKey indices (SPX · NDX · SX5E)9–10% p.a.
Buffer ETFQTOC · XTOC · QTJA · XTJA9–15% buffer
Arbitrage AMCAccelerated ETFs basketArb spread
Return Enhancer — Volatility Tolerance
HIGH BETA
Levered or directional overlays for clients with explicit volatility budget.
InstrumentTypeProfile
US Long-Only AMCActive equity · 2.0× S&P 500 (5y)Beta 1.4
US Long-Short AMCHedged equity · 3.5× S&P 500 (5y)Beta 2.0x
ROM2x Daily Tech ETFBeta ~2.0
SSO2x Daily S&P 500Beta ~2.0
Disclaimer. This document is a strategic allocation framework prepared by Blanc WM for internal discussion. It is not investment advice, a solicitation, or an offer to buy or sell any security. Tickers shown are illustrative of category exposure and not specific recommendations. Allocations are targets, not actuals; client portfolios are constructed individually based on suitability, currency, jurisdiction and capital-protection constraints. Structured products carry issuer credit risk and complex payoff profiles; review term sheets before subscription. Past performance does not predict future results.