Decisions loom on RBC factors and why you should consider middle market private high yield

Skyscrapers in downtown area, bottom view, blue tones

The first quarter launched 2021 on a positive note. However, the U.S. Federal Reserve’s response to the crisis has many investors concerned about inflation and rising rates.

In this issue of Insurance Quarterly, our strategists and portfolio managers offer their expertise on valuations, credit and interest rate risks, and offer a variety of opportunities for finding yield and value across the asset class spectrum.

In this issue:

  • Market Insights – While markets stayed broadly optimistic, bouts of volatility arose triggering inflation concerns. The world is still investing through the pandemic, but as Seema Shah, Chief Strategist at Principal Global Investors discusses, policy support continues to help drive the global economic recovery.
  • Industry Insight – Sam Early, actuary at Principal Financial Group, believes the next few months will provide clarity for insurers as final decisions are made on risk-based capital (RBC) factors for bond investments. Are real estate investments next?
  • Spotlight on Portfolio Allocation Strategies – Middle market private high yield has proven time and again to deliver higher yield and return, lower volatility, and better default and loss experience than public alternatives, and we believe insurance investors should consider a greater allocation.
  • Asset Class Perspectives – Current views on several real estate and fixed income sectors, as well as emerging market debt.

Principal Global Investors
Principal Global Investors

Partnering with insurance investors is a key strength of Principal Global Investors. From our own insurance company heritage, Principal Global Investors has grown into a global investment manager with more than $500 billion in assets under management, and nearly 900 institutional clients globally (as of December 31, 2020). 48 of those 900 clients are external insurance companies. They trust Principal Global Investors to manage more than $14.3 billion in assets, ranging from private real estate debt and equity, to specialized debt and equity strategies. We have nearly three decades of insurance investment experience externally and five decades managing the general account for Principal Life.

Amanda Wilson
Managing Director, Institutional Sales & Relationship Management
711 High Street
Des Moines, Iowa 50392

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