Investors need to break with tradition

Higher overseas allocation is necessary in today's world. In the distant past - or 15 years ago - f...

Higher overseas allocation is necessary in today's world. In the distant past – or 15 years ago – for most investors asset allocation was simple. Take a large slice of UK equities, add a layer of gilts and sprinkle with foreign equities to taste. Today the process is more complex, more interesting and more rewarding. Some investors, led by family offices and larger institutions, are demanding both diversification and strong returns with allocations to assets such as commercial property, commodities, hedge funds and private equity. Yet a review of company reports at the end of 2005 suggest...