With stock market valuations close to record highs, and interest rates beginning to rise from all-time lows, traditional portfolios are likely to disappoint in the years ahead. In contrast, endowment-style models - which include significant allocations to non-traditional strategies including private equity and debt, liquid alternatives, and real assets - offer an attractive combination of growth and low volatility. By allocating to high-performing external fund managers, such an approach can be implemented efficiently and cost-effectively. - watch Thomas Weber, PhD, LGT Capital Partners, and earn 0.25 CE/CPD hrs on Portfolio Construction Forum