SAA is consistently meeting and discussing issues with insurers, investment managers and others involved in the insurance investment process. What have been the common themes and challenges we hear? And how are various insurers approaching these key issues? What might we expect in the financial markets and economy over the next year? And, how might that impact insurers’ future plans? This session serves as the starting point for the day’s sessions, which are focused on helping you succeed in an increasingly challenging investment environment.
1. Alton R. Cogert, CFA, CPA, CAIA, CGMA
President and Chief Executive Officer
March 13, 2014
Insurance Investment Forum XIV
Investing for Insurers:
Review and Preview
3. Investing for Insurers
I want you to go to the window, open it, stick your head
out and yell:
"I'm as mad as hell, and I'm not going to take this
anymore."
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5. More Risk?
How?
Interest Rate
Credit
Liquidity
Market
Liquidity and Portfolio Choice: A Unified Approach
Time Diversification and Horizon-Based Asset Allocations
5
6. More Risk?
Where?
Bank Loans (aka Leveraged Loans)
Emerging Mkt Debt
High Yield Bonds
Dividend Focused Equities
Various Equity Capitalizations
Real Estate (REITs)
Int’l Equity
Convertibles
MLP’s
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7. More Risk?
Where?
Bank Loans
Dividend Equity
Small Cap Growth
Convertibles
EM Debt
PE (Fund of Funds)
Hedge Funds
Infrastructure
Global multi-asset/TAA
Eager, Davis & Holmes, LLC Insurance Asset Tracker, Q4, 2013
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8. More Risk?
When?
Tactical v Strategic
Mean Reversion
Cognitive Limitations
and Biases
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9. More Risk? When?
Cognitive Limitations and Biases
Making Better (Investment) Decisions
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19. Diversification
Efficient Frontier
Asset returns normal?
Correlations fixed?
All investors rational?
If everyone did it?
Which Strategic Asset Allocation Model is Best?
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