Equity exposure remains a long-term cornerstone of institutional portfolios, but recent years have pushed many investors to reconsider how that exposure is structured. Market volatility, macroeconomic dislocations and tightening monetary regimes have made the case stronger for equity strategies that do more than just chase upside. This is where structured equity protection strategies have begun to carve out a compelling role, especially for those seeking a more deliberate balance between return capture and capital preservation.
One approach that continues to draw attention involves pairing systematic global equity allocations with an embedded hedge designed to mitigate sharp drawdowns. Rather than relying on short-term market timing or discretionary overlays, this framework operates within a rules-based structure that combines broad exposure to liquid, developed equity markets with a left-tail protection mechanism. The result is a portfolio that participates in long-term equity growth, while also aiming to contain losses during pronounced downturns.
The core equity component of the strategy is built around high-quality, scalable names drawn from global developed markets. Selection leans into factors associated with resilience over time, including company size, valuation and balance sheet strength. This equity sleeve is implemented through liquid instruments to ensure cost efficiency and alignment with institutional requirements around transparency and scalability.
Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.
