For more information contact: emailus@marcusevans.com An interview with Fabrice Rossary who is the Chief Investment Officer at SCOR Global Investments and an asset management firm at the marcus evans European Pensions & Investments Summit 2013, gives advice on how to invest in a low-yield environment. Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today. For more information contact: emailus@marcusevans.com

1. Investing in a Low-Yield Environment
infrastructure projects, real estate or investment and favour dedicated
corporate financing, provides a mandate or commingled funds.
defensive pay-off thanks to the implicit
bond floor provided by a very high How can investors take advantage
historical recovery rate in case of of ILS?
default (between 70 per cent to 80 per
cent). Investing in ILS which are, by The very competitive diversification
nature, uncorrelated with the economic power of ILS and the high and regular
uncertainty also provide a very good positive carry they provide make it a
diversification benefit. very interesting alternative investment
in a global portfolio.
How can pension investments Nevertheless, the market of ILS has a
better perform in a low yield high barrier to entry where know-how
Interview with: Fabrice Rossary, environment? and sourcing capabilities are key.
Chief Investment Officer, SCOR Hence, choosing the right partner for
Global Investments The low-yield environment and the such an investment is important. Asset
erratic behaviour of equities make managers with institutional backing and
directional strategies less compiling consistent track records should be
In a low-yield environment, long only than in the past. Pension investments preferred.
investors like pension funds or should then be re-oriented to alternative
insurance companies have no choice but strategies that will not be affected, or
to increase the duration of their assets even could benefit from a negative
Debts backed
to lock-in the implicit value included in directional environment. Loans, ILS or
the steepness of the rate curves or to even allocation to hedge funds should
lower the credit quality of their be increased.
investments, says Fabrice Rossary,
Chief Investment Officer, SCOR Global Why should investors concentrate by physical
assets or
Investments. With ten year Bund yield on loans?
trading around 1.7 per cent extending
duration is a dangerous game as the One of the lessons of the 2007-2008
carry can only compensate for a small
rate increase, over one year the return
crisis that should be remembered is that
investing in credit risk based on the security
packages
turns negative if yield only goes up by supposed quality of an institution, like a
20bp, he continues. bank or a sovereign, asserted by high
ratings from rating agencies, has proven
From an asset management firm at the
marcus evans European Pensions &
to be at least quiet hazardous. Backing
credit risk by physical assets or strong have a high
level of
Investments Summit 2013, in security packages rather than by the
Montreux, Switzerland, 22 - 24 April, reputation of the issuer is definitely a
Rossary discusses why investing in real space to be explored even if it is at the
estate and Insurance-Link Securities
(ILS) are a very logical choice for
expense of a higher liquidity risk. On
the valuation side, thanks to the bank recovery
in case of
pension funds. deleveraging process, real estate loans
or infrastructure loans with five to ten
What strategies can investors use years average maturities could yield
to better deal with economic
uncertainty?
around Euribor + 200/300bp for a A/
BBB credit type risk and BB like default and
offer superior
leveraged loans can even provide
As the risk/reward of extending duration Euribor + 300/400bp, which is very
is particularly negative, investors should competitive compared to the more
increase their credit risk. Nevertheless,
in a still high level of economic
crowded, plain vanilla credit bond
market. investment
opportunities
uncertainty, cautiousness remains key.
Diversification and convexity could be On top of the credit analysis,
the proper answer to this challenging administrative booking, fiscal threat and
environment. For example, investing in legal aspect can be challenging and first
loans, whether they are based on time investors should avoid direct

2. About the European Pensions & Investments Summit 2013
The Investment Network –
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delivers peer-to-peer information Switzerland, 22 - 24 April 2013. Offering much more than any conference,
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trends and breakthrough industry thought leaders and solution providers to a highly focused and interactive
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forums on geopolitical risks in the global economy, finding opportunities for steady
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Please note that the Summit is a
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Maria Gregoriou, Journalist, marcus evans, Summits Division
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About SCOR Global Investments
Regulated by the AMF since May 2009, SCOR Global Investments manages the investment portfolio of the SCOR Group, the fifth
largest reinsurer in the world. SCOR's investment portfolio stands over EUR 13.8 billion as of September 30, 2012. The SGI’s
strategy aims at providing investors with access to unconventional betas via specialized investment funds mainly dedicated to
credit strategies (high yield bonds and loans). The commitment from SCOR (significant investment in each fund) ensures a clear
alignment of interests between investors and SGI. SCOR is also managing, through SCOR Alternative Investments, an Insurance-
Linked Securities fund.
www.scor-gi.com
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To view the web version of this interview, please click here: www.epi-summit.com/FabriceRossary