Two ways to add a defensive tilt to your portfolio
Want to stay invested in shares whilst also taking a defensive position? We spoke with Nikki Thomas, Portfolio Manager at Alphinity about adding a defensive bias without turning to cash. Firstly, Nikki says she would look to increase her allocation to defensive sectors with stable earnings such as utilities, property trusts and consumer staples. The next step is to find companies within those sectors that are less sensitive to broader economic conditions. Nikki uses the example of McDonald’s and says;
“It’s an incredibly defensive business model and we expect it will be able to deliver very good earnings growth as we go through the next 12-months even if we see the US consumer start to come under some pressure.”
In this short video she explains why analysts consistently underestimate the earnings power of this iconic brand.
Never miss an exclusive
Stay up to date with the latest Livewire content by hitting the 'follow' button below and you'll be notified every time we post a wire.
Want to learn more about Alphinity and their capabilities? Hit the 'contact' button to get in touch with us or watch Nikki's Fund in Focus here.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Please sign in to comment on this wire.