Ahead of the curve: Are defensive strategies delivering?

Excess returns of defensive global equity manager composites during market downturns vs MSCI ACWI

Introducing ‘defensiveness’ to equity portfolios can take many forms. At the most explicit end of the spectrum, we can consider dialling down market exposure using derivative-based equity overlays – whether these are static protection programmes or more complex dynamically managed strategies which could even include some implicit volatility trading. At the more implicit end, promising reduced ‘downside capture’, we find a wide array of defensive long-only equity strategies.

This content is only available to IPE Members

Already an IPE Member? Sign in here

Unlock your IPE Membership Package

For unlimited access to IPE’s industry-leading market intelligence, comprising news, data and long-form content on European pensions and institutional investment.

What type of organisation do you work for?

Join now

  • Secure online payment
  • Free European delivery
  • Best value for price

IPE editorial provides coverage of foreign pension funds’ experiences from which we can take ideas; we can also use it to share ideas regarding new and pioneering projects.

Ivonne Forno , CEO of Laborfonds