The core of the matter

Building the core of an investor's portfolio used to be a simple matter of blending a portfolio of blue-chip domestic equities. This part of the portfolio would be large-cap, benchmark-aware and low volatility. But the theory as to what makes an effective core holding has shifted. A better understanding of risk and the resultant shift towards absolute rather than relative return, plus the effects of globalisation, have combined to make investors reconsider what lies at the heart of their portfolio. So what have emerged as alternatives? Why are traditional blue-chip UK equities no longer c...