Diversification: more important than ever

  • Bonds can’t always absorb portfolio shocks
  • Equities have the potential to deliver growth, but come with volatility

Harness dynamic diversification

No single asset class offers potential for consistent growth. Harnessing dynamic diversification could help smooth this journey.

Think about BGF Global Allocation Fund for clients seeking a way of growing their capital, without taking on all the volatility associated with equity markets.

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Current asset class valuations demand selectivity

Yields are half of what they were during the financial crisis

Source: BlackRock, 30 June 2015. Percentile ranks show valuations of assets versus their historical ranges. So, if an asset is in the 75th percentile, it is trading at a valuation equal to or greater than 75% of its history. Valuation percentiles are based on an aggregation of standard valuation measures versus their long-term history. Government bonds are 10-year benchmark issues. Credit series are based on Barclays indexes and the spread over government bonds. Equity valuations are based on MSCI indexes and are an average of percentile ranks versus available history of earnings yield, trend real earnings, dividend yield, price to book, price to cash flow and 12-month forward earnings yield. Historical ranges extend back anywhere from 1969 (developed equities) to 2004 (EM$ debt).

Your hunt for smart diversification stops here

BGF Global Allocation Fund

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