Speaking at the inaugural Asia Conference on Investment and Portfolio Management for the Insurance Industry in Hong Kong, Golding said, given the current economic climate, picking the right combination of assets in investment portfolios has never been so important.
Specifically, Golding suggested that alternatives can play an important part in an investor’s portfolio, and highlighted the strong performance of assets with a low correlation to financial markets during the market slump of 2008.
“The economic crisis that has shaken world markets since 2008 has left the future looking uncertain. Bonds are incredibly expensive, and equities are looking shaky,” said Golding.
“There will be recoveries, but their size and duration are increasingly difficult to predict. This is why there has never been a better time to embrace alternative assets which display low correlation to financial markets, combined with impressive performance during these turbulent past few years. Identifying the right juxtaposition of assets is crucial, but there is no doubt that this is the approach the Asian insurance market should be taking.”
The remarks are in tune with research published yesterday by Natixis Global Asset Management which found that investors in the Middle East were interested in learning more about alternative assets. https://ia.cms-lastwordmedia.com/uae-investors-sacrifice-returns-safety/
