In recent years, low volatility has become a new investment style offering lower risk, without reducing return. It is this risk-return paradox that still shakes the fundaments of financial theory. In doing so, investors profit from the paradox. That’s good, but we believe there’s a better way.
We think it is unwise to select stocks purely based on risk considerations, ignoring the price you pay for them. This is why we also consider valuation and momentum factors to enhance returns. This approach leads to a portfolio that offers stable equity returns and tends to generate high dividends.
A pension fund with a low funding level after the financial crisis replaced conventional equities with Conservative equities to reduce risk while not giving up equity returns.
A bank decided to include Conservative equities in its defensive income model portfolio, as the strategy combines high dividend yield with lower downside risk.
A family office added the Conservative equity strategy to its portfolio of higher risk equity funds, in order to stabilize the overall performance.
An environmentally aware pension fund wanted to limit the ecological footprint, increase the ESG profile and reduce risk and therefore invested in the Conservative sustainable equity strategy.
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What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity: