Combining fixed-income securities with a managed account

Fixed-income securities (such as bonds held to maturity, or annuities) may be used to lower the overall risk of a portfolio.
The risk level for the remainder of the portfolio may be increased proportionally.

I want stocks to be 40 % of my portfolio.

I want fixed income to be 25 % of my portfolio.

That means the rest is 35% of my portfolio.

Stocks and the rest go into a managed account.

The managed account is 75% of my portfolio.

Stocks are 40/75 = 53.3% of the managed account.

That means the Risk Number for the managed account is:

(with associated 95% probability range).

-8.7 %

RISK

14.1 %

Fixed-income annual return: 3.0 %

95% probability range for the entire portfolio:

-5.8 %

11.3 %

0% fixed income:	-6.4 %		11.1 %
max fixed income:	-5.0 %		11.6 %

Stock percentage is a nominal value based on the comparison stock indices.
Risk Numbers and 95% probability range are interpolated based on the above; values should come from an actual portfolio analysis.

30 % stock:	downside -4.6 %	Risk Number 31	8.8 % upside
70 % stock:	downside -11.7 %	Risk Number 58	17.8 % upside