PT  - JOURNAL ARTICLE
AU  - Mark Anson
TI  - Diversification—A Free Starbucks Cup of Coffee?
AID  - 10.3905/jpm.2022.1.330
DP  - 2022 Jan 12
TA  - The Journal of Portfolio Management
PG  - jpm.2022.1.330
4099  - https://pm-research.com/content/early/2022/01/12/jpm.2022.1.330.short
4100  - https://pm-research.com/content/early/2022/01/12/jpm.2022.1.330.full
AB  - Diversification of sophisticated portfolios has become more difficult. In the past, asset class and geographic dispersion were sufficient to ensure a properly diversified portfolio. Not so anymore, as major economies integrate and coordinate their monetary and fiscal policies. In addition, the growth of the exchange-traded fund market has impinged on what was previously the alpha hunting ground of active managers, blurring the distinction between what is beta and what is alpha. This article shows how multi-asset solutions can be used to expand the free lunch of diversification back to its full potential.