Our latest 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.