Schroders launches innovative Insurance Linked Securities Fund
Schroders is pleased to announce the launch of SIF1- Core Insurance Linked Securities, which has the flexibility to invest in both catastrophe bonds and other insurance-linked securities (ILS) instruments.
Schroders is pleased to announce the launch of SIF1 - Core Insurance Linked Securities, which has the flexibility to invest in both catastrophe bonds and other insurance-linked securities (ILS) instruments. The Fund will invest in a diversified portfolio of ILS mainly linked to natural catastrophes such as hurricanes and earthquakes and to a lesser extent in other risks such as ‘man-made’ risks (aviation, marine, offshore energy) but not in life insurance risks.
ILS is a growing asset class for sophisticated institutional investors offering highly attractive risk-return characteristics and diversification benefits within their asset allocation models. The Fund benefits from Schroders’ portfolio construction and risk management skills as well as from Secquaero’s proprietary risk tool SPOT and their broad network and experience across the reinsurance industry.
Daniel Ineichen, Lead Fund Manager of SIF - Core Insurance Linked Securities, said:
“We are very pleased with the launch of this fund as it is an attractive proposition for institutional investors with a compelling investment case. ILS has a low correlation with other asset classes, such as equities, bonds, real estate or the business cycle. A diversified portfolio of ILS provides attractive risk-return characteristics and excellent diversification benefits, both within a fixed income portfolio and within a broader multi-asset portfolio. Due to the fund’s ability to access a wider universe of non-life insurance risks, it provides excellent diversification and downside risk control.”
The SIF Core Insurance-Linked Securities Fund is managed by Daniel Ineichen, who has 13 years of investment experience and over 6 years of experience in managing ILS portfolios, and will be supported by a 16 strong specialised ILS team across Schroders and Secquaero Advisors. The Fund is also advised by Secquaero Advisors Ltd on security selection, strategy and risk management and will target institutional investors such as pension funds, sovereign wealth funds and family offices.
Miles O’Connor, Head of Pan-European Institutional Distribution, said:
“This is an exciting proposition for sophisticated institutional investors as Secquaero Advisors has a wealth of experience in the ILS space and a very strong performance track record. Equally, ILS strategies offer excellent diversification benefits that should be considered in the evaluation of broader asset allocation opportunities.”
Schroders announced the addition of ILS to its product offering for institutional clients for the first time, following the acquisition of 30 per cent of the share capital of Secquaero Advisors Limited (Secquaero), an Insurance Linked Securities investment management business in Switzerland, in June 2013.
1 SIF is referred to as Schroder Investment Fund
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Schroders is a global asset management company with £255.8 billion (EUR298.5 billion/$388.0 billion)* under management as at 30 June 2013. 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 34 offices in 27 countries across Europe, the Americas, Asia and the Middle East. 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. *Source: Schroders, all data pro forma as at 30 June 2013, including Cazenove Capital assets under management
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