How a New Benchmark Adds to
Defensive Equity Strategy Evaluation

Defensive equity strategies represent a useful addition to an equity allocation, but evaluating them in a typical relative risk-return framework can be awkward. We offer an alternative: use a defensive equity benchmark.

In our latest paper, we’ll explore:

1. How minimum volatility indexes work
2. How an active manager can add value – within your active risk budget
3. How defensive equity active management might improve investor outcomes

We think an active strategy benchmarked to a minimum volatility index preserves the benefits of defensive equity, while adding alpha you can measure and explain.