The steady, positive returns delivered by insurance-linked securities (ILS) during times of broader financial market downturns, shows that the asset class offers reliable and consistent diversification potential for investors, according to PIMCO.
In a recent report, PIMCO (Pacific Investment Management Company LLC), which is owned by insurance giant Allianz, explores the case for a dedicated ILS allocation amid investor concern about the resilience of their portfolios.
PIMCO, which launched its ILS business in January 2019, argues that as investors search for diversification and higher yields, an ILS allocation is a way to increase both portfolio resilience and return potential.
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