Institutional investors are searching for diversification, income generation and also defensiveness in their asset selection, as they strive to build resilient portfolios to suit a world defined by fragmentation and flux, a survey from asset manager Schroders explains.
Given the current macro-economic and geopolitical backdrop, institutional investors are rethinking their allocation strategies and searching out true sources of diversified income, with relatively uncorrelated assets such as catastrophe bonds and insurance-linked securities (ILS) benefiting from increased investor attention as a result.
As we explained before when reporting on a KKR report, the traditional 60/40 stock and bond portfolio split is being reimagined, given the macro-backdrop and as a result alternative asset classes and diversifiers are once again coming into focus for many institutional allocators.
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