Low risk, high return: getting the most from a low risk asset strategy

Market volatility has made life insurers and pension funds wary of credit risk, but yields on safer assets remain disappointing. Blake Evans-Pritchard reports on ways of bettering the return while limiting risk

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It is difficult for life insurers to know where to put their money these days. With the turbulence in the markets showing little sign of abating, many institutional investors have shied away from taking on too much risk. Instead they have chosen to sink their money into those assets that offer a safer haven, such as German bunds and UK gilts.

But such a flight to safety brings its own problems. As investor money has poured into those bond markets that