Just how defensive is your portfolio really?

The ‘reach for yield’ has caused formerly defensive portfolios to gradually venture into higher risk assets that could leave them exposed to downturns. As a consequence, Gopi Karunakaran, Portfolio Manager at Ardea Investment Management urges investors to question just how defensive their portfolios really are. 

In this short interview he warns: “When you are looking at a strategy, or an asset, or an investment portfolio that is intended to be defensive, to really focus on what it is actually investing in, and how that might be expected to behave in different scenarios.” Gopi goes further and cautions that even bonds, rather than being a risk diversifier, could become risk additive to your portfolio.

Further insights 

Ardea Investment Management is a specialist fixed income investment boutique with a focus on delivering consistent alpha to clients through an investment process supported by a highly intuitive risk system. For further information please click here