The case for global diversification

Many UK investors hold portfolios that look diversified but are heavily concentrated in domestic equities, sterling assets, and a handful of familiar funds.

Home bias is natural — but expensive

The UK represents a small fraction of global GDP and market capitalisation. Sectors underrepresented in the FTSE 100 — notably technology — have driven returns elsewhere over the past decade.

Currency as diversification

Sterling weakness can boost overseas holdings, but the reverse is also true. We size currency exposure deliberately rather than treating it as a side effect of fund selection.

How we implement it

Our core equity allocation targets roughly 65% developed markets ex-UK, 20% UK, and 15% emerging markets, adjusted for each client's risk profile and tax position. We review regional weights quarterly.