AllianceBernstein research shows that in two of every three years Australian equities experience a peak to trough fall of 10% or more. And over the last 75 years, about every five years there is a material correction where markets fall close to 30%.
Although Australian equities are a much loved asset class, what these figures tell us is financial advisers and investors have an important role to protect downside risk.
The AB Managed Volatility Equities Fund aims to reduce market volatility. Its objective is to lose less in market downturns, and therefore it has less to recover when markets rebound.
In the accompanying article, AB chief investment officer, Australian equities, Roy Maslen explains several defensive strategies which can help investors win in the popular asset class.