Basis Points Generating outperformance in down markets - Hamish FitzSimons | AllianceBernstein
Beating the market doesn’t always mean chasing growth. Sometimes, it means means falling less when markets turn. Defensive equities aim to capture 80% of the upside, but only 50% of the downside- a profile designed to compound steadily and keep clients invested through volatility. Bryce and Ren speak with Hamish Fitzsimons, CIO of Australian Equities at AllianceBernstein, about how advisors can use this approach to build more resilient client portfolios.
We cover:
- 00:40 – What “defensive equities” really means and why losing less compounds over time.
- 07:00 – Lessons from the GFC: how client demand led to the Managed Volatility Equities Fund.
- 10:30 – Identifying “defensive traps”: why some safe-looking stocks aren’t truly defensive.
- 18:00 – Market outlook: expensive top-7 stocks vs. where the opportunities lie.
- 23:30 – Macro noise: how to think about inflation, China, and geopolitics without overreacting.
- 28:15 – Portfolio construction tips for advisors: Implementing defensive equities.
- 32:10 – Managing client behaviour: reducing panic selling and keeping clients invested.
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CPD Points: This episode is accredited for CPD points by the Financial Advice Association of Australia (FAAA). Complete the quiz here to claim your points
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This episode has been sponsored by Cboe APAC. Head to the Cboe website to learn more about their Cboe-listed AMVE.
The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio management teams. Views are subject to revision over time. This podcast is intended only for persons who qualify as wholesale clients as defined in the Corporations Act. AB Managed Volatility Equities Fund–MVE Class–Active ETF (MVE-Class) is a unit class of the AB Managed Volatility Equities Fund (Fund) (ARSN 099 739 447).
AllianceBernstein Investment Management Australia Limited (ABN 58 007 212 606, AFSL 230 683) (ABIMAL) is the responsible entity of the Fund and is the issuer of units in the Fund. You should read the Fund’s PDS and TMD available at alliancebernstein.com.au and first obtain professional advice before taking any action in the information contained in these documents.
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