<p>”Conventional wisdom will tell you that the lowest risk portfolio you can have is to have 70% of your assets in one country…that's a violation of common sense.”</p><br><p>Ben Preston Portfolio Manager at Orbis Investments, warns that in markets dominated by a handful of mega-caps, portfolios that look diversified on the surface- may be carrying far more risk than advisors realise.&nbsp;</p><br><p>We sat down with Ben to unpack where diversification breaks down and find out how advisors can better identify this hidden concentration risk.&nbsp;</p><br><p><strong>In this episode, you’ll learn:</strong></p><ul><li>How benchmark alignment can increase portfolio risk in narrow markets.</li><li>Why historical bubbles reveal the dangers of perceived diversification.</li><li>Practical ways to assess diversification across geographies, styles, and currencies.</li></ul><p><br></p><p><strong>Chapters</strong>:</p><p>00:00:00 – Rethinking Portfolio Diversification Risk</p><p>00:05:45 – Understanding Today’s Narrow Market</p><p>00:09:01 – Benchmarking And Concentration Exposure</p><p>00:14:15 – Defining Diversification Across Scenarios</p><p>00:18:52 – Broadening AI Exposure Beyond The US</p><p>00:22:11 – Currency Management As A Portfolio Input</p><br><p>📈<strong>&nbsp;Stocks and ETFs Mentioned:</strong> NVIDIA, META, SK Hynix Inc. SK Square Co. Ltd, ASML. TSMC, Alphabet, Next Plc, PDD Holdings.</p><br><p>———</p><br><p>CPD Points: This episode is accredited for the following CPD points by the Financial Advice Association of Australia (FAAA). Complete the quiz <a href="https://equitymates.com/episode/the-risk-hiding-in-your-clients-portfolio-ben-preston-orbis/" rel="noopener noreferrer" target="_blank">here</a> to claim your points.</p><br><p><strong>0.5 Total Hours</strong>&nbsp;</p><p><strong>Knowledge Requirements:</strong> Managed Investments (0.50 hour)</p><p><strong>Legislated CPD Area: </strong>Technical Competence (0.50 hour)</p><br><p>———</p><br><p>This episode has been sponsored by Orbis Investments.</p><br><p>If you would like to learn more about Orbis’ contrarian investment approach can offer a true point of diversification when constructing client portfolios, <a href="https://www.orbis.com/au/adviser/sunrise-on-venus-orbis-global-equity-fund-au?utm_source=bloomberg&amp;utm_medium=display&amp;utm_campaign=sov&amp;utm_content=fundlandingpage" rel="noopener noreferrer" target="_blank">click here</a>.</p><br><p>Thank you to Orbis for helping us keep all of our content free and accessible.</p><br><p>———</p><br><p><strong>Want more Basis Points?</strong></p><br><p>Sign up to the <a href="https://basispoints.beehiiv.com/subscribe" rel="noopener noreferrer" target="_blank">Basis Points email</a></p><p>Join the conversation <a href="https://www.linkedin.com/showcase/basis-points-by-equity-mates/" rel="noopener noreferrer" target="_blank">on LinkedIn</a></p><p>Watch all episodes in full and relive some of our favourite clips <a href="https://www.youtube.com/@basis.points" rel="noopener noreferrer" target="_blank">on YouTube</a></p><br><p>———</p><br><p>Basis Points is a product of Equity Mates Media.</p><br><p>This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional.</p><br><p>Equity Mates Media operates under Australian Financial Services Licence 540697.</p><hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>