Finance | Robert Hayes | 23 Jan 2009

Robert Hayes discusses whether diversification really offers any protection to charity portfolios in the event of a generalised market downturn.

Most charity trustees are familiar with the concept of diversification. However, beyond the basic mantra of it being the only free lunch in investment and not putting all your eggs in one basket, there is often less clarity on the true meaning of the concept and the best way to achieve it. The recent market dislocation, where virtually every asset class seems to have been sold indiscriminately, has raised further questions in many investors' minds.