FOCUS ON: dippping toes into the experts' perspective
Below are three articles from Insurance Asset Risk magazine that delve into focus areas of the conference – managing illiquid assets, the challenges facing absolute return strategies and the implications of Brexit for insurers' investment portfolios.
The articles are free to read and will give you a flavour of the discussions to be had on the day, so take advantage before joining us on 13 June.
Smoothing the flow in illiquid assets
At a recent roundtable, experts discussed how Illiquid assets have the potential to boost the yield and diversification of insurers' investments, but they are not a shoo-in to the portfolio.
"It is a bit like quantum physics to measure liquidity – we need to stop things to measure them. You can only attempt to quantify illiquidity in markets that are reasonably liquid. There are indicators that you can use, such as credit default swaps and things like that. But there is no scientific way to tell the risk premium from the illiquidity premium…" - Gareth Collard (Just Retirement)
Our Insurance Asset Risk conference will examine how liquid insurers' assets really are and discuss optimal liquidity management strategies. This includes a panel that will feature experts from Aviva, Aspen, AB & Local Tapiola.
Free article: read more
How does Brexit affect insurers' assets?
Ahead of the June referendum, UK insurers have spoken out on Britain leaving the European Union – or Brexit – but in the name of good risk management they must prepare their investment portfolios for either outcome.
Aside from a currency impact, likely effects include market volatility, a hit on UK government bonds and wider corporate spreads.
At Insurance Asset Risk conference three senior investment experts (from Partnership, Muzinich and Länsförsäkringar) share their thoughts on how they are adjusting their investment strategies to meet the challenges of today's highly regulated, competitive,
low return and volatile market.
Free article: read more
The modelling challenges in absolute return strategies
Absolute return strategies offer promising risk-adjusted returns and capital efficiencies, but do you need an internal model to gain the benefit and what other complexities are created?
"One of the challenges of absolute return funds is that every fund is quite unique. So if you are building a model, you are probably building a model for one fund, and then if you want to make subsequent investments it would take additional resources. Equally, in terms of communication with stakeholders, you have got to do quite a lot of due diligence for each individual fund…" - Emily Penn (LV=)
At this conference a dedicated panel will discuss the capital challenge of absolute return funds and the appeal of the risk/return profile.
Free article: read more