Why Is It Smart to Diversify Your Portfolio?
Join Managing Director Steven Goakes as he explains the importance of diversification in investment strategies and how it can help mitigate risk while optimising returns.
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Managing Director Steven Goakes delves into the concept of portfolio diversification. He discusses how spreading investments across various asset classes, industries, and geographical regions can reduce exposure to individual risks and enhance the stability of your investment portfolio. Steven emphasises that diversification is a fundamental strategy for investors seeking to navigate market volatility and achieve long-term financial goals.
Steven brings a wealth of experience to Natgen and our clients. His 30 year career has focused on commercial real estate, funds management, compliance, corporate governance and law.
With a masters degree in property and trust law and a business degree, since 1998 Steven has been structuring and operating manage investment funds to maximise returns to stakeholders. Success in this area has come through critical analysis of organisational and stakeholder needs, and focusing management effort in those areas which add investor value.
Steven has managed investment assets in excess of $1 billion and has personally overseen the purchase and investment of a further $1 billion of commercial properties and participated in (and advised on) joint-venture developments totalling over $400 million in gross realisation.
Beyond his professional activities, Steven is also actively involved in mentoring business professionals for organisations within Australia & abroad.
Steven is a responsible manager under the Group’s AFSL.
Yeah, so we see investors looking around at what they can invest in and how they do that with a properly risk-managed approach.
Of course, a risk-managed approach would indicate having good diversification within your portfolio. So we’re not suggesting for a minute that Natgen trust should be a majority of people’s investment funds or even a large minority. It should be part of a balanced portfolio.
So we can provide that property part, and that gives a higher return profile but probably a lower capital growth profile than some of the others.
So you’re looking for a mix of capital growth and income in your portfolio, and commercial property and Natgen trusts are typically an income investment. That’s not always the case; we do have some opportunities which provide capital growth.
Particularly when I referred to development before, that’s probably going to have a more significant capital growth element over time but includes an income element as well.
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