Wealth & Financial Diversification

Diversification is about investing in a range of assets that behave differently under different market conditions. While it is important to include a variety of market sectors, asset classes and geographies in your portfolio, true diversification requires a deeper understanding of the revenue sources of the underlying asset, and how quickly they react to market events. Many assets in public markets across geographies react similarly during recessions, correlating closely to other sectors. For an investor, this has the same effect as overconcentration, even if the portfolio is spread internationally. To solve this problem, we specialise in private investments. We have access to private equity, debt and property opportunities that are not available to the public. These assets are immune to amateur investors who occasionally sell in a panic, driving down the asset value. They also have superior returns due to the illiquidity premium. We combine exclusive private investments with traditional public asset classes, such as equity, fixed income, real estate and cash equivalents. This diversified approach to portfolio management delivers superior results, year on year. As the cornerstone of modern portfolio theory, diversified investments mitigate risk and deliver higher returns. Clients benefit from lower risk and enhanced potential for growing their wealth.

Without diversification, the risk becomes dangerously concentrated. For example, people who invest all their wealth in, say, oil, would lose everything if the oil market crashes, but would make only limited profit if the oil market performs well. It’s a situation of too much risk and not enough reward.The Family Office creates investment portfolios designed to offer you the maximum reward, for the minimum risk. Diversification is essential. You can increase your potential for gains significantly when you invest across a wide spectrum of private and public assets. Better still, with long-term private investments, you benefit from better prices and the lucrative illiquidity premium. In short, diversification mitigates risk while increasing returns.