The case for geographic asset class diversification

Many investors believe that they can select the best performing asset class and asset manager and that the asset class and asset manager will consistently deliver exceptional returns year after year. However this is never the case as illustrated by our asset class quilt which looks at asset class returns over the last 12 years. This holds true when investing with asset managers as well. Our analysis shows that the best solution is to diversify away your risk and improve your ability to generate consistent returns through application of a multi-manager approach.