Nedgroup Investments Global Cautious Fund - A strategy for de-risking your portfolio

As global central banks begin to scale back monetary stimulus, which has been the main catalyst driving equity market valuations, this note considers how to use the Nedgroup Investments Global Cautious Fund as a defensive allocation strategy to de-risk a diversified global portfolio.

Monetary stimulus has driven market valuations

The MSCI World Index returned 100% from March 2020 to end of December 2021. The injection of liquidity by global central banks through asset purchases after the onset of Covid-19 has been one of the major factors driving the returns of global equity markets. As central banks begin to taper these programs, what does this mean for equity markets?