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Portfolio mix simulator

Balance shares, bonds, property, private equity, private credit and venture, and see what the mix does to expected return, volatility, liquidity and capital calls.

Start from a preset
Venture's correlation with listed markets
$12,500,000
$1m$20m

Move any slider and the others adjust in proportion, so the mix always adds to 100%. Select a slice of the donut to jump to its slider.

8%Private markets
Total 100%Listed and liquid —Private markets —

Illustrative, not a forecast or a recommendation. On J.P. Morgan's 2026 assumptions, with venture's correlation adjusted for slow valuations.1,2,3

Expected risk and return a year
PortfolioCompound returnVolatility
This mixCompound return—Volatility—
Same mix, listed onlyPrivate equity and venture moved to shares, private credit to bondsCompound return—Volatility—
Typical 60/4030% Australian shares, 30% global, 40% bondsCompound return—Volatility—

How quickly the money can come back
Listed and liquidCash, bonds, shares: days—
PropertyMonths to sell—
Private creditAbout 3 to 5 years—
Private equityAbout 7 to 10 years—
Venture10 to 12 years or more—
Capital calls and the ESVCLP offset
—
Capital to be called
Private equity, private credit and venture, committed up front
—
Peak yearly call
Drawn evenly over about four years
—
Venture dollars
—
ESVCLP offset, up to 10%
Claimed in the years the money goes in. Non-refundable; capped by the fund's eligible investments4
Assumptions and sources

Based on J.P. Morgan Asset Management's 2026 Long-Term Capital Market Assumptions (Australian dollar matrix, 10 to 15 year horizon, data as at 30 September 2025).1 Private assets are J.P. Morgan's median-manager estimates net of fees, and outcomes between managers vary far more than the averages suggest. Venture capital isn't in the Australian dollar matrix, so its return, volatility and correlations come from the US dollar matrix. Global shares are unhedged; property and private credit are hedged to Australian dollars; private equity is unhedged.

The mix return is J.P. Morgan's arithmetic returns weighted by the mix, less half the portfolio variance, as an approximate compound annual return. Volatility for private equity, private credit, property and especially venture understates the real risk, because their valuations are smoothed and marked infrequently. The listed-only comparison leaves property where it is.

The Hardman presets use that paper's venture weights; the risk-matched balanced mix also moves shares to 37% and bonds to 55%, as the paper does, so it trades some return for lower volatility.2 "60/40 with 8% in venture" keeps the bonds at 40% and takes the venture out of shares. The correlation switch changes only venture's links to listed assets. "Adjusted for slow valuations" uses J.P. Morgan's matrix, about 0.64 with shares. "As reported" uses what reported return series show: AngelList measured 0.0 against the Nasdaq (2015 to 2020) and Invesco −0.06 against large-cap shares, so venture is set to −0.06 with shares and 0 with cash, bonds and property.3 How shares split between Australian and global is ours.

Capital calls assume each private allocation is committed in full at once and called evenly over four years, with no distributions or fees shown. The ESVCLP offset is up to 10% of eligible contributions, non-refundable, and claimed through the tax return for the year each call is paid.4

Asset classCompound return a yearVolatility

Australian dollars unless noted.

Sources

  1. J.P. Morgan Asset Management, 2026 Long-Term Capital Market Assumptions, Australian dollar assumption matrix (data as at 30 September 2025): compound and arithmetic returns, volatilities and correlations over 10 to 15 years. Venture capital figures from the US dollar matrix of the same edition. ↩
  2. Hardman & Co, How much should clients invest in venture capital? (TES white paper, 25 November 2021): optimal venture weights by risk profile, 60/40 case 8% seed or 13% scale-up. ↩
  3. AngelList, Innovation isn't Correlated with the Markets (Abe Othman, 11 May 2020): 0.0 correlation between AngelList's seed portfolio monthly returns and the Nasdaq, 2015 to 2020, no significant lagged correlation; cites Invesco's -0.06 between venture and large-cap equity returns, and a very weak link between Cambridge Associates vintage TVPI and public market indices. ↩
  4. Australian Taxation Office, ESVCLP tax incentives and concessions. ↩
General information only. This tool is written for financial advisers and accountants. It doesn't take into account any person's objectives, financial situation or needs, and it isn't tax, legal or financial advice. Tax outcomes depend on individual circumstances and on legislation that may change. Past performance is not a reliable indicator of future performance. Fund interests are offered to wholesale investors only (Corporations Act s708). Tall Order manages an ESVCLP and has an interest in this topic.