We view global allocation as one fund offering a world of opportunities. It's built upon the principles of broad diversification, across asset class, as well as across geography. It's a balanced and diversified design that seeks to leverage active management and fundamental research in identifying bottom-up opportunities as well as informing top-down positioning that can help the portfolio perform well across a range of market environments.
The Global allocation portfolio is designed for long-term investors. Portfolio includes a sixty percent allocation to equities, emphasizing long-term growth. Equity allocations include exposure to regional markets where we look to provide research beyond large cap and to take advantage of less efficient parts of the market. Additionally, we include allocations to style portfolio's growth and value.
Take advantage of sectors or companies that could do well at different points in the business cycle. We believe in the importance of income in providing consistency of returns within a portfolio, and twenty eight percent of the portfolio is in bonds. These include allocations to high yield as well as emerging market dollar, and emerging market local debt. These provide higher return potential, but also higher risks. So we include ballast through allocations to core bonds and cash.
As well as an allocation to alternatives through our absolute return oriented bond strategy that seeks to provide defensive characteristics, but with less strategic interest rate sensitivity than a bond index. Additionally, we hedge specific risks within in the portfolio to improve performance in specific environments. We have an allocation to real assets equity that's a hedge against unexpected or high inflation.
Additionally, we hedge the currency risk associated with our developed market global bonds, as well as our emerging market hard currency bonds, which we hedge back to Canadian dollar.