Investec case study

Chapter 2 - Structurally diversifying sources of risk

Published by : Investec

Holding assets which exhibit different return patterns provides the potential to build a portfolio that delivers a superior trade-off between risk and return. This is the concept of diversification. Problems occur, however, when diversification is improperly implemented (often when based on labels rather than behaviours) or when it is done just to reduce risk without also focusing on whether each additional position can also add to potential returns. 

Published:26 October 2017

Business Area: Asset Allocation

Type: Portable Document Format (.pdf)


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