High dividend yield, high growth "dual focus" Insurance funds are expected to increase allocation to equity assets in the second half of the year.

In the face of a low interest rate market environment, increasing the allocation of equity assets has become a common consensus among insurance funds. A reporter from the Shanghai Securities News recently learned from industry insiders that insurance funds are still expected to increase their allocation of equity assets in the second half of the year, focusing mainly on two directions: one is high dividend yield targets with low valuations, and the other is high growth targets represented by new productive forces and new consumption trends. In the first half of this year, insurance funds actively entered the market through methods such as acquiring listed companies and establishing private equity funds. Industry insiders believe that the continuous entry of insurance funds into the market is due to two reasons: on one hand, policies such as optimizing equity investment risk factors and conducting long-term stock investment trials have opened up space for insurance funds to enter the market; on the other hand, in a low interest rate environment, long-term bond yields are difficult to cover the cost requirements of insurance companies' liabilities, making increasing the allocation of equity assets an inevitable choice for insurance funds. "In recent years, guided by policies, listed companies have increased their dividends and repurchase efforts, which is also a good opportunity for insurance funds for long-term investments. Regardless of whether from the perspective of policy support or their own asset-liability matching needs, insurance funds are expected to increase their allocation of equity assets in the second half of the year, and we will actively seek investment opportunities," a relevant person from an insurance fund institution told the reporter.