diversification

Diversification is one of the most effective tools an investor can use, for the simple reason that spreading risk means you are unlikely to get wiped out if one or two investments go bust. But it is not a foolproof concept, and in fact it is laden with potential traps.

Structured the right way, private debt can provide options that both cater to the defensive sleeve of a portfolio and serve as a proxy for equity market investments.

The tendency to relent to client commentary, which in many cases is driven by headlines and sentiment, is one of the biggest detractors from long-term returns.