There is no such thing as a free lunch

The only free lunch available for advisers and clients these days is diversification, and even diver...

The only free lunch available for advisers and clients these days is diversification, and even diversification nowadays comes with responsibilities. The responsibility on behalf of the advisers is simple - truly understanding the strategies and asset classes they are selecting, and crucially explaining them clearly to clients. The current events surrounding Arch cru's funds, which attracted in the region of £300m of assets through advisers, shows even for a relatively sizeable minority of advisers they 'ate the lunch' and diversified their clients into these private equity funds without...