Begin with the objective
A global strategy is not simply a collection of investments from different countries. The first questions are practical: what is the capital intended to support, when might it be needed and how much uncertainty can the owner accept? Writing these priorities down creates a basis for evaluating the choices that follow.
Look at the underlying exposures
Several holdings can still depend on similar industries, currencies or economic conditions. Diversification can help manage risk, but it cannot eliminate investment losses. The relevant question is how the exposures relate to one another, rather than how many names appear on a statement.
Consider implementation separately
Access, costs, liquidity and the quality of information may differ across markets and products. An interesting market theme does not establish that a particular investment is suitable. Personalized recommendations should be assessed with an appropriately authorized professional.
Create a reason to review
A useful review process identifies changes in objectives, liquidity needs or assumptions. The aim is to maintain a coherent plan, not to react automatically to every headline. Any decision to change an allocation should consider the context and consequences.
POINTS TO CONSIDER
- Define the purpose and time horizon of capital.
- Review underlying exposures, not just the number of holdings.
- Separate market interest from an individual investment decision.
Further reading: OSC investor education: diversification ↗
Information contained on this website is provided for general informational purposes only and should not be considered investment, legal, tax, accounting, insurance or other regulated professional advice.
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