The Latest
Asset Allocation

Ignore diversification: BCI’s Dunatov

Stefan Dunatov, head of investment strategy and risk at Canada’s $170 billion British Columbia Investment Management, says long term investors should forget about diversification at the strategic level and instead focus on buying growth beta assets.
Asset Allocation

Hiding behind diversification

Modern portfolio theory has created the impression that diversification is always a good thing, but asset owners could benefit from a more sceptical attitude. This article suggests over-diversification favours managers at the expense of returns to investors.
Investor Profile

Spain’s Caixa boosts risk off allocation

In an overhaul of investments impacting almost every asset class, Spain’s largest corporate pension fund, is looking to increase diversification and improve its ESG ratings. It’s decreased equities in favour of US government bonds as part of a strategy to protect the portfolio in a potential downturn, this strategy also includes tail risk hedging, currency hedging and slashing its hedge funds allocation.
<1of4>