Diversification is treated as a structural principle rather than a tactical adjustment. By allocating capital across asset classes, geographies, and return drivers, portfolios are designed to reduce dependence on any single outcome or market condition. This approach supports balance and durability across varying economic environments.

Effective diversification focuses on how different exposures interact, not simply on the number of holdings. Asset classes respond differently to growth, inflation, liquidity, and policy shifts, and thoughtful portfolio construction considers these relationships to avoid unintended concentration and correlated risk.

Diversification serves a long-term purpose: preserving flexibility and stability as conditions evolve. By maintaining balanced exposure over time and adjusting deliberately rather than reactively, capital remains positioned to withstand volatility while continuing to support long-term objectives across cycles.