Please note: this article is more than one year old. The views of our CIO team may have changed since it was published, and the data on which it was based may have been revised.
Our CIO Special looks at the complex issue of portfolio diversification within a strategic asset allocation (SAA) approach.
As the report argues, the aim should be to create portfolios with a reasonable balance of robustness and efficiency. Diversification should help you to do this but getting it right is difficult and should not be seen as a trivial undertaking. You should also be careful not to overestimate what diversification can do. The report therefore considers:
- Future uncertainty and implications for portfolio performance
- Diversification in theory: methodology and challenges
- Diversification in practice and the impact on asset classes
To download a PDF of the full report, please click here.
