According to a BlackRock survey, 42% of insurance executives said they are likely to decrease their equity investments over the next 12 to 24 months, although the same number said they would maintain their equity exposure. Only 13% expect their allocations to increase, while 3% didn't respond. Meanwhile 45% said they will increase holdings of investment-grade fixed income during the period, with 26% indicating they would increase allocations to non-investment-grade fixed income. Among alternative asset classes, 27% expect to increase allocations of illiquid offerings, such as private equity, real estate and infrastructure, while 18% said the same for more liquid alternatives like hedge funds.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
