Consultant Cautions Investors Not To Mistake Diversification For Protection In Bid To Cut Equity Risk

Reducing exposure to equity risk remains a key priority for clients at bfinance in the second half of 2019, according to Toby Goodworth, who is head of risk and diversifying strategies. He said that investors can consider a number of tools to do this, including allocations to liquid alternatives as well as applying equity risk overlays to diversify risk exposures and improve portfolio resilience to equity market downturns. This is particularly attractive right now as investors look to position their portfolios for late-cycle diversification. However, investors should be careful not to mistake diversification for protection, Goodworth notes.