What does proper portfolio diversification look like?

Michael Spinks, co-portfolio manager, Investec Diversified Growth Don't rely on labels  The starting point for genuine diversification is to focus on the underlying characteristics and behaviours of assets, rather than just relying on asset labels, to assess their roles in a portfolio.  In our view, a high yield bond behaves more like equities than a government bond and so should be regarded more like a substitute for equity, rather than a diversifier. By understanding the expected behaviours of different assets and blending these characteristics accordingly, a portfolio can achie...