Defensive assets: Asset allocation in changing market conditions

Monday 25 April 2022


Risk aversion and volatility remain elevated with markets assessing the growth impact of sustained inflationary pressures and ongoing geopolitical uncertainty. The bond market took the brunt of more aggressive central bank policy to quell inflationary pressures over the past months.

In our latest report, we assess the defensive qualities of financial assets under the lens of various risk parameters. In particular, we take a look at:

  • A more challenging market context ahead
  • Defensive allocation under a multi asset lens
  • Why diversification is the only free lunch in portfolio construction