Norwich Union says IFAs should not let their clients keep all their eggs in one basket. It says advisers should encourage their clients to build a balanced portfolio rather than investing in a small number of funds or sectors.
Norwich Union says IFAs should not let their clients keep all their eggs in one basket. It says advisers should encourage their clients to build a balanced portfolio rather than investing in a small number of funds or sectors.
During the Diversification is a Balancing Act investment seminars, Norwich Union showed how a portfolio that includes equities from different sectors and regions, bonds and commercial property is more likely to produce steady returns with less volatility.
Neil Davies, head of investment product development at Norwich Union, said: "No single investment can be a top performer all the time and in all economic environments. Combining different investments in a client’s portfolio helps produce more stable returns over time.
"Investing in fixed interest and commercial property funds within a balanced portfolio can reduce volatility. Fixed interest investments can provide a steady income and commercial property also has the advantage that it does not follow the performance of the stock market and can produce steady returns when the stock market is falling.
"People should remember that the key to successfully building a portfolio is diversification. Having all your eggs in one basket can be a high-risk strategy."
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Notes to Editors
- The Norwich Corporate Bond fund is a moderate risk fund and aims to provide a total return in the medium to long-term above that available on UK Government securities. Investors benefit from the opportunity to receive a competitive income paid quarterly and also enjoy the rewards of investing with household names such as Barclays Bank and British Telecom. The Ł518.7m fund is managed by Paul Mingay.
- The Norwich Property Trust aims to obtain optimum returns compatible with security via income and capital appreciation, through investment in real property, property-related assets, Government and other public securities and units in collective investment schemes.
- Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world’s seventh-largest insurance group based on gross world-wide premiums.
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with world-wide premium income and retail investment sales from continuing operations of around Ł30 billion and assets under management of more than Ł240 billion.
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