Fixed income still commands the lion’s share of asset allocation for insurance companies, but after a decade of historically low interest rates and rich valuations, insurers are searching for incremental returns. That task may lead them afield into new territories, especially on the private and alternatives side. “Everyone’s thinking, if there’s no clear opportunity, what is my best relative option? Where am I best served to put money to work as I seek to find that return without disproportionately increasing risk?” asks Peter Miller, Insurance Research Strategist at Invesco.
Lower returns. Greater complexity. Fewer resources. The challenges chief investment officers (CIOs) face today have never been more demanding. Neil Blundell, Global Head of Client Solutions at Invesco, and Duy Nguyen, CIO and Head of Global Advisory Solutions, recently sat down with Institutional Investor to talk about the solutions CIOs from some of the world’s largest institutions are using to help navigate the current investment climate.