RT Journal Article
SR Electronic
T1 A Key Rate of Sector and Country Diversification
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 21
OP 26
DO 10.3905/jwm.2018.21.2.021
VO 21
IS 2
A1 Michael Christensen
YR 2018
UL https://pm-research.com/content/21/2/21.abstract
AB The degree of diversification is the most important issue investors should consider when forming portfolios or choosing portfolio managers. This article argues that high-net-worth (HNW) investors can usually do a lot to increase their degree of portfolio diversification, not only with respect to the market risk but also regarding a whole battery of potential risk factors that impinge on the portfolio. In particular, the article suggests a method to determine the degree of industry diversification and country diversification, which may be useful when HNW investors compare portfolios.TOPICS: Portfolio construction, wealth management, global, risk management