Australian pension funds are exploring investment opportunities in natural disasters, seeking to boost returns. This move is driven by concerns over low interest rates and a need for diversification. The strategy involves investing in catastrophe bonds, which provide insurance against natural disasters. While some critics argue that this approach could lead to increased risk-taking, proponents believe it can help pension funds achieve higher returns while also supporting disaster relief efforts.
Source: https://www.bloomberg.com/news/newsletters/2024-08-11/pension-funds-eye-natural-disasters-rbnz-crunch-rates-call-australia-briefing