Institutions’ Growth Risk Hidden By “Diversification” Label, Meketa Says

Diversifying assets in institutional investors’ portfolios often carry equity growth risk that may be hidden by their “diversifying” label, according to U.S. consultants at Meketa. Institutional investors have been seeking to add non-equity assets to diversify their portfolio in the face of lackluster market returns, but consultants warn even commodities, fixed income and other asset classes may carry hidden exposure to equity growth.