In this publication, Farhat Selmi, Head of Buy and Maintain Strategies for Insurance Portfolios explains how Buy and Maintain strategies work, highlighting five alpha sources that are applied to optimize the portfolio book yield. Ostrum manages €170bn in insurance assets, comprised of 80+ bond portfolios managed for 25 clients (as at 31/12/2018).
- Dynamic insurance bond asset management allows the portfolio to cushion inevitable declines in yield values over time
- We identify five sources of value-add associated with Buy and Maintain strategies: asset allocation, diversification, timing, risk management and arbitrage
- At Ostrum AM, we believe that Buy and Maintain strategies are well suited to sit alongside traditional and cautious long-term investment strategies