Solving the Problem of Non-Diversification
I work with fund managers and their Boards to meet their fiduciary responsibilities by solving the problem of non-diversification while meeting performance targets.
Endowment and pension fund managers and their Boards have a fiduciary responsibility to manage the fund in a prudent manner for beneficiaries. In terms of portfolio composition prudence has become synonymous with diversification.
Yet since 2008 the majority of assets in the majority of portfolios have NOT been diversified when it comes to managing the systemic risk of market collapse. Where does that leave fund managers and their Boards?
On top of this managers must find yields in the current low-interest rate environment.
The Solution - Build Your Own Assets
The only solution to restoring portfolio diversification is for managers to incorporate into the portfolio assets whose value is independent of the fiat system.
Self-Managed Investments (SMIs) have been specifically designed to remedy this untenable situation. A form of digital hedge fund SMIs have zero exposure to systemic risk in the market. At the same time their zero-fee structure offers potentially better returns than traditional hedge funds.
SMIs join only a handful of assets such as property, commodities and digital currencies whose value is non-dependent on the fiat system. It is from these assets that fund managers can rebuild diversity to a portfolio and reduce exposure to the daily threat of fund collapse.
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