What Are Defensive Equity Strategies

Defensive Equity strategies and funds are often ignored and overlooked, until it is too late. In the current market environment, that may not be wise.

Jun 2022

Equity

Defensive Equities Now Matter

The stagflationary backdrop for equities is challenging. And investors are starting to feel the pain of negative YTD performance in their portfolios. Whilst the long term credo of 'stick to the plan' has historically been proven as the right thing to do, on this occasion fixed income markets do not have their back. In our investment research feeds last week, the #1 search query was "Defensive Equity Strategies".

Go inside RFPnetworks to review all Global Defensive Equity investment manager insights.

Global Equity

A time for dividends to shine

Aegon Asset Management

Aegon global defensive equity research on RFPnetworks depicted by Haybales

While there are reasons to be both positive and negative about global equity markets, a more cautious case is gathering momentum. Inflation is now 8.5% year-on-year in the US, while GDP expectations are being revised downwards. Most cycles of tightening by the US Federal Reserve end in recession and this may be no different.

This article by Aegon AM's global equity income team explains why a dividend-focused global equity strategy is worth considering in such an uncertain environment.

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