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: • What “defensive equities” really means and why losing less compounds over time. • Lessons from the GFC: how client demand led to the Managed Volatility Equities Fund. • Identifying “defensive traps”: why some safe-looking stocks aren’t truly defensive. • Market outlook: expensive top-7 stocks vs. where the opportunities lie. • Macro noise: how to think about inflation, China, and geopolitics without overreacting. • Portfolio construction tips for advisors: Implementing defensive equities. • Managing client behaviour: reducing panic selling and keeping clients invested. 00:00 Introduction & Defining Defensive Equities 04:29 How the Strategy Works in Practice 08:07 Origins After the GFC & Evolution Over Time 12:22 Making the Case to Advisors 15:23 Rethinking Banks as “Defensive” 18:50 Valuations, Market Concentration & Opportunities 24:38 Macro Risks, China & US Outlook 29:03 Practical Advice for Building Resilient Portfolios ——— CPD Points: This episode has been accredited for CPD points by the Financial Advice Association of Australia (FAAA). To claim your points, complete the CPD Quiz and we'll send you your certificate (https://equitymates.com/episode/gener...) ——— 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. ——— Want more Basis Points? Sign up to the Basis Points Newsletter here: https://basispoints.beehiiv.com/subsc... Follow Basis Points on LinkedIn:   / basis-points-by-equity-mates   Have a question? Send us a message on our website (https://equitymates.com/get-in-touch/) ——— Basis Points would not be possible without the support of our three launch partners: Orbis - Invest differently - https://www.orbis.com/au/investor/home Milford Asset Management - Invested in the outcome - https://milfordasset.com.au/ CBOE - Local market, global opportunities - https://www.cboe.com/au/equities/ Thank you to all three partners for helping us keep all of our content free and accessible. ——— Basis Points is a product of Equity Mates Media. This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional. Equity Mates Media operates under Australian Financial Services Licence 540697.