Despatches  

Achieving diversification from a global equity portfolio

  • Describe how different parts of the equity market perform in different economic conditions
  • Explain how the strong dollar impacts equity portfolios
  • Identify how different equity investment styles are performing this year
CPD
Approx.30min
Achieving diversification from a global equity portfolio
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Diversification is a long sought-after cornerstone of building a portfolio, and it has been somewhat more difficult to achieve over the past few years, due to political and economic turbulence.

However, investing via geographical diversification is one way to achieve this, and investing in global equities builds in much more variety than simply investing in UK assets. 

But there is a skill in picking the right kind of funds and indeed stocks to go for, as well as to avoid. Focusing heavily on the S&P 500, for example, will give an investor very strong exposure to tech stocks, which all share the same risks.

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This report, which qualifies for 30 minutes' CPD, outlines some of the challenges to look out for.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Chris Elliott, which substantial part of the global equity market does he believe provides little diversification?

  2. What intuitively popular sector has underperformed since the end of May?

  3. Which of the the below is a consequence of tighter monetary policy?

  4. What does Garland say has left investors unsure how to price equities?

  5. Which one of the below areas does Anness cite as a traditionally safe sector?

  6. Why have emerging markets underperformed this year?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe how different parts of the equity market perform in different economic conditions
  • Explain how the strong dollar impacts equity portfolios
  • Identify how different equity investment styles are performing this year

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