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Managing Portfolios in a Low-Rates Age

The low-rate environment of recent years has affected institutional investors across the spectrum, particularly the insurance sector, which has traditionally allocated a large portion of assets to fixed income. Lower returns from fixed income of late has meant some insurers have had to revise their asset allocations toward assets such as equities.

While equities can potentially increase long-term performance, their returns have been more volatile than those of bonds, even over longer horizons — and insurers may have strict limitations on their allocation to equities. Is there an efficient way for an insurance company to include equities in their investment strategy?