Diversification is key to strong portfolio performance – it helps eliminate short-term volatility and supports the delivery of long-term returns.

Jeff Hales

Benefits of Asset Class Diversification

Individual asset class perform differently from each other, with some rising as others fall. Asset class diversification lets you increase your odds of success and reduce negative consequences by spreading the risk across different types of investments.

Traditional Mix of Stocks and Bonds

  • Large weighting in low-yield asset class
  • Excessive portfolio volatility
  • Limited flexibility to meet portfolio objectives

Multiple Asset Class Mix

  • Reduced portfolio volatility
  • Similar returns, with increased certainty
  • The ability to customize for conservative, growth, and high-growth preferences