e-fundresearch.com: What are your personal lessons learned from 2014 market developments?
Karsten Bromann: If markets are too soft for too long, then too many market participants start to ignore the ‘risk’ part in ‘risk adjusted return’. One needs to stay firm, even when returns dip below long-year averages.
e-fundresearch.com: With regards to the new year 2015: How optimistic is your view into the future and what obstacles and challenges should investors be prepared to overcome in 2015?
Karsten Bromann: Challenges: At one point in time money will begin again have a price tag to it, the free money strategy of the central banks cannot continue for ever. At that time investors should expect enhanced potential for price decreases and volatility in the markets. For our asset class we remain moderately optimistic. Any downturn or consolidation of general financial markets will likely have only a moderate effect on Insurance Linked Securities (ILS).
Hinweis: Karsten Bromann (Solidum Partners) ist Speaker
beim ARC Outlook 2015 am 21. Jänner in Wien
e-fundresearch.com: Why should investors consider an increase in allocation to your asset class in 2015?
Karsten Bromann: With prospective risk adjusted returns -although lower than in the long year average- still clearly positive, a proven track record of historic independence from other markets in difficult times, and negligible duration risk, ILS stand a good chance to successfully perform their role as a valuable diversifier in an investment portfolio.
