TY - JOUR T1 - A Key Rate of Sector and Country Diversification JF - The Journal of Wealth Management SP - 21 LP - 26 DO - 10.3905/jwm.2018.21.2.021 VL - 21 IS - 2 AU - Michael Christensen Y1 - 2018/07/31 UR - https://pm-research.com/content/21/2/21.abstract N2 - 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 ER -