Schroders increases stake in ILS management business Secquaero
Zurich, 1st April 2016
Schroders has increased its stake in Secquaero Advisors Limited (Secquaero) from 30 per cent to 50.1 per cent in February 2016, further cementing its commitment to the Insurance Linked Securities (ILS) business.
In 2013, Schroders entered into a joint venture relationship with Secquaero predicting the strong growth in the asset class. With assets under management reaching CHF 1.84 billion in 20151, the combination of Secquaero’s specialist knowledge pertaining to re-insurance and securitization of insurance risks and the global reach of Schroders’ asset management distribution platform have seen increased interest from global institutional clients.
Stephen Mills, CEO Schroder Investment Management (Switzerland) AG said:
“ILS continues to present great opportunities for institutional investors wanting to diversify their portfolio with an asset class that presents an excellent risk/return profile. We believe the asset class is a great stabilizer, both within a fixed income portfolio as well as a broader multi-asset portfolio and investors have seen the benefits of holding different risks than those traditional asset classes are subject to. Working in partnership with Secquaero, we have one of the best resourced ILS teams in the industry, which makes us a highly attractive choice to sophisticated investors looking for return with little correlation to other asset classes.”
Dirk Lohmann, CEO and Chairman Secquaero Advisors Limited said:
“Since the start of our partnership Schroders investment team supported by Secquaero has grown into one of the leading providers of institutional investment solutions for insurance linked assets. In a time where diversification and positive absolute returns are key, the investment case for ILS has once again been confirmed following the increased volatility observed in markets since the middle of last year. We look forward to continue working with our colleagues at Schroders to deliver new solutions to improve our clients access to this important source of diversifying returns.”
The Schroders-Secquaero team, based in Zurich, increased their overall ILS business from CHF 270 million in 2013 to CHF 1.84 billion over the past three years2 and have been working to diversify their client base internationally. The Schroders investment team of two portfolio managers and two on-desk risk managers are supported by three catastrophe risk modellers, five fully qualified actuaries and a structuring specialist, supported by an underwriting and origination team and have combined experience of over 260 years. The depth and the analysis capabilities allow the ILS team to construct attractive investment solutions across the full spectrum of the ILS asset class, ranging from private transaction dominated strategies all the way to more liquid cat bonds funds.
Given its diverse skill set, the Schroders-Secquaero team scooped Investor of the Year at the Trading Risk awards ceremony in June 20153.
For further information, please contact:
Béatrice Hirzel Corte, Leiterin Kommunikation Schweiz +41 (0) 44 250 12 14
Notes to Editors
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Schroders is a global asset management company with CHF 463 billion under management as at 31 December 2015. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 38 offices in 28 countries across Europe, the Americas, Asia, Middle East and Africa. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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1 Schroders as at 31 December 2015
2 Schroders as at 31 December 2015
3 Trading Risk Awards 2015