Van Lanschot Kempen Logo

Market Mussings

Navigating Market Extremes: The ever so important role of diversification

Equity markets have reached extreme levels of market concentration. This is largely the result of a few mega-cap companies with stellar stock performance. When markets are concentrated, active managers tend to struggle. But it is especially important in these types of markets to continue to seek diversification strategies. Not losing sight of the less dominant sectors, regions, and lower market capitalizations, has proven to pay off in the long run.

Download the PDF

The authors

Joris Franssen

Reineke Davidsz

General risks to take into account when investing in Dividend equity strategies
Please note that all investments are subject to market fluctuations. Investing in a Dividend Equity strategy may be subject to country risk and equity market risks, which could negatively affect the performance. Under unusual market conditions the specific risks can increase significantly. Potential Investors should be aware that changes in the actual and perceived
fundamentals of a company may result in changes for the market value of the shares of such company

Disclaimer
Van Lanschot Kempen Investment Management NV (VLK Investment Management) is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. This document is for information purposes only and provides insufficient information for an investment decision. No part of this document may be used without prior permission from VLK Investment Management. This document does not contain investment advice, no investment recommendation, no research, or an invitation to buy or sell any financial instruments, and should not be interpreted as such. The opinions expressed in this document are our opinions and views as of such date only. These may be subject to change at any given time, without prior notice.

There’s a saying in Dutch, Kom verder, it means many things and it’s our business philosophy. It captures the way we work with clients but also the way we steer our investee companies to deliver shareholder value through active engagement.

Capital at risk. The value of investments and the income from them can fall as well as rise, and investors may not get back the amount originally invested. Past performance provides no guarantee for the future.

Van Lanschot Kempen Investment Management (UK) Limited is registered in England & Wales with registration number 02833264. Registered office at 20 Gracechurch Street, London, EC3V 0BG Tel: +44 (0)20 3636 9400. Van Lanschot Kempen Investment Management (UK) Ltd, is authorised and regulated by the Financial Conduct Authority (FCA) with reference number 166063.