What can you afford to lose?

Within the investment industry, it is widely acknowledged that over 80% of value is added to a client's portfolio through asset allocation, with the balance coming from stock selection. Creating the perfect blend of stocks, bonds, cash and currencies has a greater impact on overall performance than individual security selection, while diversification reduces overall risk. Only active, non-formulaic management of a portfolio will ensure consistent performance, but this thinking has to be part of an overall investment philosophy and fund services, as well as other investment products, w...