Cherry picking can add risk

It is a well established fact that asset allocation is responsible for more than 90% of variability in returns from a global, multi-asset portfolio. Despite this, many advisers still adhere to the alchemist's route to investment success - avoid higher risk markets, have a 'home market bias', and spread the investment across a number of funds from star managers. This so-called 'cherry-picking' approach is risky; if you are lucky, and equity markets go your way, a number of fund managers will be out-performers. But remember, fund managers are human (mostly). It is all too easy to be self-cong...