Thinking outside the box: Using ILS to complement fixed income
09/16/2019
Authors:
Beat Holliger , Head of Product Management, ILS
Brad Angle , Alternatives Director
Falling yields mean many fixed income investors have been forced to accept higher risk to drive returns. We believe ILS is an overlooked tool in diversifying risk and improving returns.
Executive summary:
- Fixed income investors have been boxed in for several years, forced to accept increasingly lower yields
- That box has gotten smaller as the portion of the global bond market trading with negative yields grows
- Falling yields have affected fixed income portfolios of all types, from traditional Barclays Aggregate strategies to income-oriented portfolios
- By thinking outside the box and incorporating insurance-linked securities (“ILS”) in fixed income portfolios, we believe investors could potentially see higher returns and lower risk
To download the full content, click on the banner below.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.
This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. This site is solely intended for use by institutional investors and institutional-investment industry consultants.
Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada. SFA markets certain investment vehicles for which other Schroders entities are investment advisers.
Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com
SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.
