Staying balanced amid volatility: the benefits of diversification in an uncertain world

Markets rarely move in straight lines. Inflation spikes, policy pivots and geopolitical shocks can push asset classes into sudden synchrony, leaving many “diversified” portfolios feeling anything but. The Baillie Gifford Managed Fund team believe that, over time, disciplined asset-mix decisions, systematic rebalancing and uncovering off-index opportunities can keep clients on course when headlines turn hostile. In this session we cut through the noise to examine the enduring power of diversification across asset classes, regions and industries. We’ll discuss why correlations climb in crisis and use real examples to show how a long-term perspective, and learning from mistakes, can stop investors abandoning their goals at precisely the wrong time.

Objectives

• Understand how a broader opportunity set and a disciplined approach to asset allocation can cushion portfolios against volatility
• Learn why time horizons matter when making investment decisions during crises
• Find out where we’re looking for growth (and it’s not in the index!)

Speaker

Holly McKenzie, Client Relationship Manager, Baillie Gifford

Holly joined Baillie Gifford as a client relationship manager in 2021. She has a background in international development and international trade. Holly previously worked for the British Council, the Great Britain China Centre and the Law Society of England and Wales. She graduated BA (Hons) in Chinese from the University of Leeds in 2013 and achieved a Double MSc in International Affairs with distinction from the London School of Economics and Peking University in 2021.