Investing in a Low-Yield Environment                                             infrastructure projects, real estate or  ...
About the European Pensions & Investments Summit 2013  The   Investment        Network        –  marcus evans Summits grou...
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Investing in a Low-Yield Environment: Interview with: Fabrice Rossary, Chief Investment Officer, SCOR Global Investments - European Pensions & Investments Summit


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An interview with Fabrice Rossary who is the Chief Investment Officer at SCOR Global Investments and an asset management firm at the marcus evans European Pensions & Investments Summit 2013, gives advice on how to invest in a low-yield environment.

Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today.

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Investing in a Low-Yield Environment: Interview with: Fabrice Rossary, Chief Investment Officer, SCOR Global Investments - European Pensions & Investments Summit

  1. 1. Investing in a Low-Yield Environment infrastructure projects, real estate or investment and favour dedicated corporate financing, provides a mandate or commingled funds. defensive pay-off thanks to the implicit bond floor provided by a very high How can investors take advantage historical recovery rate in case of of ILS? default (between 70 per cent to 80 per cent). Investing in ILS which are, by The very competitive diversification nature, uncorrelated with the economic power of ILS and the high and regular uncertainty also provide a very good positive carry they provide make it a diversification benefit. very interesting alternative investment in a global portfolio. How can pension investments Nevertheless, the market of ILS has a better perform in a low yield high barrier to entry where know-howInterview with: Fabrice Rossary, environment? and sourcing capabilities are key.Chief Investment Officer, SCOR Hence, choosing the right partner forGlobal Investments The low-yield environment and the such an investment is important. Asset erratic behaviour of equities make managers with institutional backing and directional strategies less compiling consistent track records should beIn a low-yield environment, long only than in the past. Pension investments preferred.investors like pension funds or should then be re-oriented to alternativeinsurance companies have no choice but strategies that will not be affected, orto increase the duration of their assets even could benefit from a negative Debts backedto lock-in the implicit value included in directional environment. Loans, ILS orthe steepness of the rate curves or to even allocation to hedge funds shouldlower the credit quality of their be, says Fabrice Rossary,Chief Investment Officer, SCOR Global Why should investors concentrate by physical assets orInvestments. With ten year Bund yield on loans?trading around 1.7 per cent extendingduration is a dangerous game as the One of the lessons of the 2007-2008carry can only compensate for a smallrate increase, over one year the return crisis that should be remembered is that investing in credit risk based on the security packagesturns negative if yield only goes up by supposed quality of an institution, like a20bp, he continues. bank or a sovereign, asserted by high ratings from rating agencies, has provenFrom an asset management firm at themarcus evans European Pensions & to be at least quiet hazardous. Backing credit risk by physical assets or strong have a high level ofInvestments Summit 2013, in security packages rather than by theMontreux, Switzerland, 22 - 24 April, reputation of the issuer is definitely aRossary discusses why investing in real space to be explored even if it is at theestate and Insurance-Link Securities(ILS) are a very logical choice for expense of a higher liquidity risk. On the valuation side, thanks to the bank recovery in case ofpension funds. deleveraging process, real estate loans or infrastructure loans with five to tenWhat strategies can investors use years average maturities could yieldto better deal with economicuncertainty? around Euribor + 200/300bp for a A/ BBB credit type risk and BB like default and offer superior leveraged loans can even provideAs the risk/reward of extending duration Euribor + 300/400bp, which is veryis particularly negative, investors should competitive compared to the moreincrease their credit risk. Nevertheless,in a still high level of economic crowded, plain vanilla credit bond market. investment opportunitiesuncertainty, cautiousness remains key.Diversification and convexity could be On top of the credit analysis,the proper answer to this challenging administrative booking, fiscal threat andenvironment. For example, investing in legal aspect can be challenging and firstloans, whether they are based on time investors should avoid direct
  2. 2. About the European Pensions & Investments Summit 2013 The Investment Network – marcus evans Summits group This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, delivers peer-to-peer information Switzerland, 22 - 24 April 2013. Offering much more than any conference, on strategic matters, professional exhibition or trade show, this exclusive meeting will bring together esteemed trends and breakthrough industry thought leaders and solution providers to a highly focused and interactive innovations. networking event. The Summit includes visionary presentations and interactive forums on geopolitical risks in the global economy, finding opportunities for steady returns in recalibrating markets and rethinking pension products to deliver sustainable benefits in a new systemic context. Please note that the Summit is a closed business event and the Contact number of participants strictly Maria Gregoriou, Journalist, marcus evans, Summits Division limited. Tel: + 357 22 849 400 Email: For more information please send an email to All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.comAbout SCOR Global InvestmentsRegulated by the AMF since May 2009, SCOR Global Investments manages the investment portfolio of the SCOR Group, the fifthlargest reinsurer in the world. SCORs investment portfolio stands over EUR 13.8 billion as of September 30, 2012. The SGI’sstrategy aims at providing investors with access to unconventional betas via specialized investment funds mainly dedicated tocredit strategies (high yield bonds and loans). The commitment from SCOR (significant investment in each fund) ensures a clearalignment of interests between investors and SGI. SCOR is also managing, through SCOR Alternative Investments, an Insurance-Linked Securities marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsAPAC Investments Summit - www.apacinvestmentssummit.comElite Summit - www.elitesummit.comEmerging Markets Investments Summit - www.emisummit.comPrivate Wealth Management Summit (North America) - www.privatewealthsummit.comTo view the web version of this interview, please click here: