With no apparent end in sight for low interest rates, and post-retirement lifespans ever-increasing, equities are an important part of the asset mix for people in and approaching retirement. However, Aaron Binsted, Portfolio Manager at Lazard Asset Management, warns that some equities strategies can be highly volatile, and expose investors to the outsized impact of negative returns around retirement age – known as sequencing risk.
"Just simply seeking the highest dividend yield over the next year is a potentially bad outcome… We don’t think people should simply target high yield."
In this short video, Aaron shares three dangerous investing mistakes made by defensive equity investors.
Defence is the best form of attack
Aaron's Fund has historically provided capital growth and income that is consistent with the Index with less than half the drawdown, compared to the Index in negative markets. Find out more here.