David McFadzean is the head of manager research at RBC Wealth Management, a wealth manager with about 160 billion euros ($233.82 billion) of assets under management. Mr. McFadzean, who works out of the U.K., tells The Wall Street Journal Europe why he prefers well-diversified funds over those that are specialized.

We are generally shying away from a large allocation to very specialized funds. This is because we believe that now more than ever, a diversified portfolio of investments will deliver the best risk-adjusted returns.