At Dominion Capital Strategies we know that one of the most important elements in our proposition is the ability to provide a diversified portfolio of high-quality investment opportunities.
We use a selection of the most attractive investment opportunities, supplied by skilled Fund Managers, to build powerful, diversified, portfolios for our clients. Applying principles of diversification, we aim to maximise the potential returns each portfolio offers, while balancing them against reduced risk. The resultant portfolios are highly efficient.
Unforeseen events can often have powerful effects on particular assets. For example, if we choose to invest solely in energy stocks, the resultant portfolio could be heavily exposed to fluctuations in oil prices. A sudden drop in oil prices could be devastating – assuming we were only exposed to companies reliant on oil. Meanwhile, the rest of the market could benefit, as fuel costs lower.
A better approach to investing is to diversify the type of companies held in a portfolio. Adequate diversification always has to take various sectors, countries, and currencies, into account. These three areas are the most relevant to the risk assumed by the client, along with considerations over the specific combination between fixed and variable income.
Another area where diversification is key is within the sphere of our domestic realities. As such it is paramount to generate or manage a reserve outside of the everyday reality of house, work and other local investments. In this case it is important to apply diversification, reducing the risks inherent in using the same currency and the same jurisdiction across one’s investments.
Ultimately, when designing our investment portfolios, assessing the investor´s expectations, needs, and characteristics is vital. Through investment diversification I can do so efficiently, and with far less risk.