Defensive Investment Strategy

Defensive Investment Strategy

An investment strategy in which a money manager seeks to protect the client's investment. A defensive investor seeks low risk, low return securities such as bonds, certificates of deposit, and some blue chip stocks.
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"We came into 2018 with a defensive investment strategy. A family owned catering hall, that has survived a number of recessions is a part of an asset class we like," said Brian Foley, head of originations at Procida Funding.
Net mortgage investments secured by cash-flowing properties represented 83.9% of the portfolio (March 31, 2018 - 86.8%), a key hallmark of our defensive investment strategy and highlighted by 40.9% secured by rental apartments (March 31, 2018 - 42.9%).
However, Stephen Lowe, group communication director at financial services group Just, cautioned: "As the pension fund grows and retirement nears, the money at stake gets larger and the time to recover from disaster gets smaller, so there remains a strong case for some to shift to a more defensive investment strategy to stop a sudden asset price shock derailing a plan to retire around a certain date.