Corporate
Building a diversified global portfolio without chasing yield
A portfolio is not a collection of products. It is a set of jobs: growth, income, hedge and dry powder. This note explains how eTrustFinancial assigns those jobs.
Clear writing on risk. They never pretend a hedge is free or that past performance is a plan.
Why diversification still comes first
Diversification is more than owning many tickers. It is spreading the sources of return and the sources of failure. Equities, duration, FX and real assets fail at different times.
What the mandate has to cover
- Equity growth sleeve: Quality listed businesses sized to valuation and liquidity.
- Income sleeve: Treasuries, investment-grade credit and selected REITs.
- FX overlay: Hedge operating currency or add a documented tactical view.
- Liquidity sleeve: Cash and short paper so you are not a forced seller.
How we construct the book
- Write the objective: Growth, income, hedge or a named liability.
- Set risk limits: Drawdown, concentration, leverage and currency.
- Pick the sleeves: Only products the desk can administer and report.
- Review on a calendar: Quarterly unless a limit is breached sooner.
Conclusion
A written mandate is the first serious step. After that, the work is to stay inside the limits when markets get loud.
Desk replies
Helena Ortiz
Useful framing on mixing FX hedges with an equity book. This is the kind of note I forward to our family office committee.
Ralph Edwards
Useful framing on mixing FX hedges with an equity book. This is the kind of note I forward to our family office committee.s
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