Insurance Quarterly: Perspectives, challenges, and opportunities

As we move into 2021, global risk assets are on much more solid footing than they were at the beginning of the COVID-19 market crisis. 

The resounding theme in this issue of Insurance Quarterly is that despite the beginning of the pandemic’s aftermath, finding value, income, and diversification across risk assets may still pose challenges. However, with opportunities across the asset class spectrum—from taxable munis to private equity real estate—our strategists and portfolio managers offer a variety of alternatives worth your consideration.

In this issue:
• Market Insights – The U.S was the clear outperformer for much of 2020 and global risk assets are on more solid footing as we move into 2021. Seema Shah, Chief Strategist, at Principal Global Investors discusses navigating uncertainty on the path to recovery in 2021.
• Industry Insight – Jack Bishop, Principal General Account Portfolio Manager believes the barbell continues in 2021. Tax-exempt, investment grade and high yield should all be part of insurers’ playbooks, while incorporating equity upside-exposure on the margins.
• Spotlight on Portfolio Allocation Strategies – EM countries are set to enter the new year with an improving fundamental narrative. The absolute and relative valuations in EMD are currently cheap, offering desperately needed yield and liquidity amidst a positive global risk environment.
Asset Class Perspectives – Current views on several real estate and fixed income sectors, as well as preferred and capital securities.

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