Conning ConnText Podcast Offers Insight on 2021 Markets, Trends in Insurance Company Portfolio Management
January 29, 2021
Markets Appear Positioned for Continued Strength as U.S. Political Regime Changes; Appetite May Grow for Risk Assets
HARTFORD, CT – January 29, 2021 —Leading global investment management firm Conning has posted its latest Conning ConnText quarterly podcast, examining the state of capital and investment markets and the potential impact of the Biden administration and a new Congress. The podcast also reviews how these larger trends may impact investment sectors and the firm’s views on managing its insurance company clients’ investment portfolios.
Rich Sega, Conning’s Global Chief Investment Strategist and host of the podcast, explains that capital markets were “amazingly strong through the wild ride of 2020.” This strength, along with additional government stimulus, low inflation and potential recovery from the pandemic, supports a constructive view for world economies this year. While the U.S. elections in November did not deliver a much-discussed “blue wave” Democratic takeover in the U.S. Senate, the landscape has changed and may lead to “an increase in regulations for some industries, more subsidies for others, and changes in tax rates, deductions and incentives for various companies.”
Joining Rich on the podcast is Cindy Beaulieu, Managing Director and Chair of Conning’s Investment Policy Committee, which sets the firm’s investment strategy. She translates how the macro trends Mr. Sega discusses roll down to strategies for the firm’s insurance company clients.
With possible additional stimulus and other potential government spending on their way and taxes holding steady at least for now, “the appetite for risk assets grows stronger and the path for interest rates is likely higher, although maybe slowly at first,” Ms. Beaulieu said. “But it’s tough to rationalize a 1% 10-year U.S. Treasury note with all the money that is being made available to stabilize and grow the economy.”
Mr. Sega and Ms. Beaulieu also discuss the growth in sustainable investing and their outlook for the entertainment and hospitality sectors.
Conning (www.conning.com) is a leading investment management firm with approximately $198 billion in global assets under management as of December 31, 2020.* With a long history of serving the insurance industry, Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of December 31, 2019, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”). The Global Evolution Companies are affiliates of Conning. SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities.
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