ESG Inside: Equity Defender

Strategy focus

LFIS’ equity defender strategy offers exposure to European equities while embedding a certain level of protection.

Underlying stock selection seeks to reduce financial risk through a ‘quality’ screen according to defined fundamental and technical financial metrics. Portfolio construction also considers ESG criteria, screening to eliminate stocks with low scores according to a combination of external data providers and LFIS’ in-house ESG rating methodology. The integration of quality and ESG criteria seeks to orient the strategy towards those issuers with less risk, both financial and non-financial. The strategy seeks to deliver protection through a discretionary overlay approach adjusted to estimated systemic market risk.

LFIS’ simple, transparent approach seeks to allow investors to participate in the performance of equity markets while diminishing volatility and sharp drawdowns (over a full market cycle).