01 Mar 2019 2 min read

3D diversification

By John Roe

What are the key ways to diversify a portfolio? And why might investors wish to do this in the first place?

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Diversification by region, asset class and currency is a simple, structural way to help avoid extreme, poor outcomes. So it’s surprising how often these potential easy wins aren’t taken. For example, we regularly see very high allocations to US or UK assets in multi-asset funds while allocations to alternative assets like high yield, emerging market debt and infrastructure are often limited.

John Roe

Head of Multi-Asset Funds

With failed football dreams behind him, John applies the same level of enthusiasm to investing and how to improve outcomes by battling behavioural biases. He leads on oil research, but also gets involved in a wide range of macro topics. That love of variety also explains his craft beer fascination. Hard to shut up, he’s a regular guest on Bloomberg, a conference speaker and an LGIM Director. His analytical thinking benefits from being an Actuary with an economics degree and having previously worked as a strategist at RBS.

John Roe