Summary

Amid market uncertainties, the importance of tactical flexibility within a broad investment universe cannot be overstated. We explore the benefits of possessing both tactical allocation expertise and access to low-return correlated assets in this case study of insurance-linked securities, an asset class that offers both return correlation benefits and total return potential to opportunistic fixed-income strategies.

Man walking in a flooded road wearing rain boots.

Key takeaways

  • Insurance-linked securities (ILS) offer the potential to provide valuable diversification with appealing risk-adjusted returns.
  • Investing in ILS offers a unique structural opportunity: a risk, return and liquidity source that is structurally uncorrelated to the capital markets.
  • ILS may present an attractive option for investors seeking alternative fixed-income solutions to support their financial goals, increase yield and enhance portfolio resilience.
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