Defensive Global Funds

aroominyork

MarkCarnage said:

Defensive can mean companies that operate in sectors which are less vulnerable to a general economic recession, or also stocks which have a 'defensive moat' in terms of a dominant market position with high entry barriers. Both of these types of stock should be inherently cash generative in most cases, which assists with capex/dividend funding.

Sorry, but I think that further confuses. I see defensive as being less venerable to the economy, but not as having moats. Companies with barriers to entry can be highly vulnerable to a recession: I would not consider them defensive.

MarkCarnage

Sorry, but I think that further confuses. I see defensive as being less venerable to the economy, but not as having moats. Companies with barriers to entry can be highly vulnerable to a recession: I would not consider them defensive.

Fair point, but being 'defensive' in relation to being less vulnerable to the economy doesn't work either at times. Look at Food Retailing - price wars and disrupter entrants didn't really help them much. My bigger point is that there are a number of stocks that were perceived as defensive, for either reason I described that were actually quite vulnerable to disruptive entrants. 

aroominyork

Then it's a question of defensive stocks vs. defensive sectors. Generally defensive is discussed in the context of sectors, and that's certainly more relevant to the OP. 

Prism

aroominyork said:

Then it's a question of defensive stocks vs. defensive sectors. Generally defensive is discussed in the context of sectors, and that's certainly more relevant to the OP. 

I would say not always. Healthcare is a defensive sector but includes biotech for example. I would say there needs to be an emphasis on resilient (defensive) companies as much as the sector itself, especially if considering an active fund. In terms of passive then I guess quality is the closest match

takesyourchances

I have held BNY Mellon Global Income from it was previously Newton Global Income. I hold this along with some Global IT's.

I like the spread of companies it invests in.

StellaN

takesyourchances said:

I have held BNY Mellon Global Income from it was previously Newton Global Income. I hold this along with some Global IT's.

I like the spread of companies it invests in.

The OP is already considering a similar option in the Evenlode Global Income fund along with Bankers Investment Trust and the Troy Trojan Global Equity fund.