Often SA investors muddle global diversification with fleeing risk, when emerging markets offer a better bet.
But, he says, diversification is about managing risk: avoiding or eliminating risks can only be done by downgrading investment goals. He makes a crucial point that moving assets from SA to the UK is not global diversification. SA is not a bad place to invest, but it is a risky place in which to invest everything. Moving assets to the UK is moving into one with lower political and currency risk. It is one of the longest established developed markets, after all...