Brian Digney: Diversification is the cornerstone of long-term portfolio management.
At its core, diversification means spreading capital across different assets, geographies, sectors, and managers to reduce overall portfolio risk. In doing so, we aim to stabilise returns and avoid extreme volatility — creating a more predictable return stream over time.
We also want portfolios that can perform across different market regimes. With constant shifts – geopolitical, market, interest rate risks – we aim for structures that don’t require constant active management.
Traditionally, the foundation has been Strategic Asset Allocation (SAA): a rules-based approach that sets long-term targets – e.g., 60% equities, 40% bonds. It brings discipline and consistency to rebalancing decisions.
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