Investors around the world continue to fear a return of the stocks and bonds volatility seen in 2022 and as a result diversifying and uncorrelated assets are increasingly being sought out, which is positive for the insurance-linked securities (ILS) asset class.
In a recent Reuters article, a range of institutional investors explained how they are more actively searching out the more uncorrelated asset classes, so investments that are not linked to equities, bond markets, or broader economic performance.
Traditional investment diversification strategies, such as the 60/40 equity and fixed income mix, were seen to fail in 2022, as both sides of the capital markets suffered big valuation declines and some investors found there was no insulation for their portfolios.
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