Schroders Capital opens Insurance-Linked Securities investments to US investors with launch of new global fund
June 28, 2023
Schroders Capital today announces the successful launch of Schroders Capital Coda Fund, an insurance-linked securities (ILS) fund.
The Cayman-domiciled fund, which will invest primarily in tradable, public ILS instruments with a focus on global natural catastrophe risks, was launched earlier this month with two clients committing a combined total of $70 million.
Schroders Capital’s ILS team has a proven track record of successful insurance-linked investments across both liquid and illiquid strategies, establishing itself as a global leader in catastrophe bonds with over $3 billion managed within this part of the ILS universe. The Coda Fund will be managed by Daniel Ineichen as lead portfolio manager.
Drawing upon the investment experience from Schroders Capital’s existing catastrophe (‘cat’) bond strategies, the Schroders Capital Coda Fund is designed to cater to US investors seeking to benefit from Schroders Capitals longstanding track record in ILS, going back to 2011.
The open-ended, actively managed fund provides qualified investors with twice-monthly liquidity. The primary objective of the fund is to generate absolute returns with a low correlation to traditional assets. The fund seeks low interest rate duration and low credit risk.
Stephan Ruoff, Global Head of ILS, Schroders Capital, commented:
“The successful launch of the Schroders Capital Coda Fund reinforces our commitment to expanding Schroders Capital’s ILS capabilities. Furthermore, it marks a significant milestone for Schroders Capital’s ILS division as we continue to further build our brand in the US market, offering investors the chance to potentially generating returns that historically remain uncorrelated to the broader financial markets.”
Jennifer Manser O’Rourke, Head of Corporate Communications, North America
+1 212 632 2947
Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $90.6 billion (£75.3 billion; €84.8 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 31 December 2022 (including non-fee earning dry powder and in-house cross holdings)
Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2022, assets under management were £737.5 billion (€831.3 billion; $887.2 billion). The founding family remain a core shareholder, holding approximately 48% of the firm’s voting shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £7 billion and employs over 6,100 people across 38 locations.
Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.
Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if they deliver for clients, they deliver for Shareholders and other stakeholders.
Further information about Schroders can be found at www.schroders.com.
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All investments involve risks including the risk of possible loss of principal. Insurance-linked instruments may incur severe or full losses as a result of insurance events such as natural, man-made, life-related, or other catastrophes. Catastrophes can be caused by various events, including, but not limited to, hurricanes, earthquakes, typhoons, hailstorms, floods, tsunamis, tornados, windstorms, aviation accidents, fires, pandemics, explosions and marine accidents. The incidence and severity of such catastrophes are inherently unpredictable, and an investor’s losses from such catastrophes could be material. The secondary market for insurance-linked instruments may experience limited liquidity. In situations where a large catastrophe has occurred or appears likely to occur, liquidity for potentially affected insurance-linked instruments may be diminished or completely eliminated.
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