InvestSA: Achieving style diversification

One of the key building blocks in portfolio construction is the benefit derived from diversification.

In other words, each asset’s contribution to the portfolio’s compound return is slightly more than its return in isolation when we hold the proportion in each asset constant. Each asset also adds a little bit to the portfolio’s return from diversification.

Read the full article featured in the November 2015 InvestSA.

By executive Director at 27four Investment Managers, Vic du Preez.