Based on a proprietary survey of nearly 50 CIOs who collectively oversee more than $8 trillion dollars in assets, leading insurance companies are navigating and evolving their asset allocation priorities for today’s more volatile interest rate environment, according to the report No Turning Back by Henry McVey, CIO of KKR’s balance sheet and head of global macro and asset allocation (GMAA).
Specifically, McVey noted that allocations to nontraditional investments have remained high, even as interest rates have risen significantly, because CIOs have gained greater conviction in the diversification and return benefits that these assets can provide in both low and high interest-rate environments. The report also notes that CIOs are increasingly focused on leveraging both liquid and illiquid allocations to build more resilient “all-weather” portfolios to take advantage of dislocation and access new markets.
“The clear message we drew from our 2024 insuran
