How are you ensuring portfolios are diversified for today's volatile market? (Part I)

clock • 16 min read

As events such as the forthcoming EU referendum contribute to market uncertainty, managers tell Investment Week in this special two-part feature where they are finding the best uncorrelated assets that are helping their portfolios achieve 'true' diversification and reveal their strategies for coping in this environment

Roman Muraviev, head of catastrophe bonds, Twelve Capital Insurance-linked securities (ILS) Insurance-linked securities (instruments covering the risk of defined insurance events - such as earthquakes and hurricanes) offer investors access to genuine insurance risks with low levels of correlation to mainstream financial risks. An allocation to ILS investments generally improves, sometimes substantially so, the diversification profile of an overall portfolio. Acknowledged for their low levels of correlation and attractive return potential (historically the returns of the cat bond u...

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