onsdag den 8. februar 2017

How to diversify your portfolio with a bumper income from catastrophe insurance

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DAILY BULLETIN
Wednesday 08 February 2017
Buying opportunity for CATCo Reinsurance Opportunities
by Nick Sudbury | Funds | 5 mins. to read
Resinsurance
We all know that we should aim for a well-diversified portfolio, but that is easier said than done given the high correlations between most of the main asset classes. The tendency for different securities to move in unison is particularly acute during a sharp market sell-off, which is precisely when you need your more defensive holdings to increase their value.

Most investors use gold to improve their diversification and there are various alternative asset classes that are also worth considering, with one of the least correlated being catastrophe insurance bonds. These are available via the specialist investment trust CATCo Reinsurance Opportunities (LON:CAT), whose C shares trade in London under the ticker CATC.

 
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