The fundamental concept in a defensive portfolio is investments predominantly in fixed-income securities with an equity exposure limited to 25% of the portfolio. In general, we select fixed-income assets with a high-quality profile (with a high average rating), and low volatility, however sometimes in combination with instruments issued by lower-quality issuers.

The portfolio's main contribution to capital gain is through its exposition to the equity markets with conservative investments, such as equity funds, ETFs, and in convertible bonds.

In order to improve returns while limiting risks, the portfolio may include exposure to certain types of other assets. These are essentially low-volatility securities such as capital-protected deposits linked to the performance of an underlying instrument - typically a stock-market index or a currency, and in a more significant way, hedge funds via fund of funds structures.

Model Portfolio in US dollar, in euro.