In the red corner... Multi-managers versus model portfolios

There are many perils to being an investment adviser. There are the demands of clients, who want to see their money increase in perpetuity. Then there is regulatory scrutiny with a focus on robust and repeatable outcomes. And last week Jupiter warned of another one – over-diversification. Modern portfolio asset allocation tools that distribute "something to every asset class" in order to offer diversification could be putting client money at risk, Jupiter Unit Trust Managers director of strategic alliances Neil Carter warned delegates. "This is not necessarily the right thing to do...