Wednesday, December 2, 2020, 3:15 PM - 3:35 PM | Protected Equities as a Component of Strategic Asset Allocation?

A strategic asset is one with ‘predictable’ risk return behaviour for the purpose of matching liabilities. Equity protection has long been used as a tactical trade for two main reasons. Firstly, financial crisis used to happen decades apart in the previous century, leaving time to capture enough equity risk premium between two of them. In the meantime, investment services firms didn’t offer benchmarked solutions for equity protection, rather dedicated and discretionary trades. Since the new millennium, equity markets shocks occur several times within the same cycle. This warrants a new response to downside protection. This session reveals how systematic solutions can protect against extreme risks as strategic components of the asset allocation.