We had the pleasure of again attending the IBR Asset Allocation Conference in Sydney last week. Certainly, in today’s climate, the key topic was investment volatility. Especially how to manage it going forward. There was a really diverse mix of presenters ranging from senior academics from Australian University Business Schools, Economists, Portfolio Managers from Institutional Investors both Commercial and Not for Profit. There were Australian based and Multi-National Institutions, Boutique asset managers, as well as service providers such as Asset Consultants, Fixed Interest Dealers and Index providers.
The recurring themes seemed to coincide in the saying, “This is about as good as it gets for the next few years, but the good news is that it probably won’t get much worse in the same time frame”…..excluding the possibility of a strange US Presidential Election outcome.
The world economy has been bumping along in the “Post GFC” reality of extraordinarily low-interest rates, Quantitative Easing (QE) with little sign of inflation appearing despite the massive fiscal stimulus.
Volatility and instability in equity markets and commodities have been the norm rather than the exception. Similarly, fixed Interest markets have been living in fear of the inevitable, eventual switch from QE and the return to a normal yield curve from such a low (in some cases a Subzero) base. How can investors control the investment volatility in a portfolio in this current climate?
Investment Volatility and The Case For Life Settlements Investment.
Against this backdrop, we presented the case for an allocation to alternatives. In particularly those (such as insurance-linked securities) whose non-correlation to traditional markets. We have reviewed the exceptional benefits for investing in life settlements and its place in the market of alternative investments.
A positive note which provided attendees with the opportunity to discuss their approach to investing in alternatives. An asset allocation strategy which seems to be increasing in popularity again with many investors seeking true diversification.
I will close with some sage advice from a panel discussion about dynamic asset allocation strategies in a diversified portfolio and the risk management strategies you might consider.
Three questions to consider ex-ante (before you embark on your investment portfolio construction endeavour).
- What does “success” look like?
- “Acceptable failure”, what does it look like?
- What does “unacceptable failure” look like?
As always we wish you well in your investment endeavours and would be happy to discuss any aspect of our service offerings with you. You can contact us.
About Global Insurance Settlements Funds PLC (GISF)
Global Insurance Settlements Funds PLC (GISF) is an umbrella type investment company with segregated liability between sub-funds. The fund is incorporated in Ireland. The first sub-fund launched, GIS General Fund (the Fund), is listed on the Irish Stock Exchange.
This structure is aimed at Sophisticated / Institutional investors. Additionally, it provides tax clarity by ensuring there is no tax leakage. It enables a number of different investment options to suit the specific needs of our investors.
The Fund’s core activity is to actively manage a large and diverse portfolio of life insurance policies (life settlements). The Board of GISF selects those that best meet the Fund’s policy purchase criteria.
This information is intended for qualifying investors only. It was correct at the time of preparation. It has been prepared to provide general information only. and should not be considered as a “securities recommendation” or an “invitation to invest” in any jurisdiction. Potential investors should consider the relevance of this information to their particular circumstances. Before proceeding, investors must obtain the prospectus and take their own legal and taxation advice. If you acquire or hold one of our products we will receive fees and other benefits as disclosed in the prospectus and relevant offering documents.