Leadenhall Capital Companions LLP, the London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked funding supervisor, has launched a brand new disaster bond fund focusing on traders in Australia and New Zealand, working in partnership with Bennelong Funds Administration.
Nearly a yr in the past, Leadenhall and Bennelong announced a distribution agreement that will see Bennelong Funds Administration distributing the Leadenhall Capital Companions vary of insurance coverage linked securities (ILS) fund methods to institutional traders in Australia and New Zealand.
Now, Leadenhall has established a devoted cat bond fund technique for the area, launching the LCP Insurance coverage Linked Securities Fund as a method that may spend money on disaster bonds and be supplied to traders throughout Australia and New Zealand.
The 2 companies stated the brand new ILS fund technique will carry the distinctive asset class to institutional traders within the area, providing all the advantages of its traditionally low correlation to conventional funding markets and financial circumstances, offering traders with a useful alternative for portfolio diversification.
Lorenzo Volpi, Deputy CEO and Managing Accomplice of Leadenhall, highlighted the significance of the strategic partnership with Bennelong in launching the brand new cat bond fund.
Volpi defined, “With Bennelong’s robust native presence and experience, we imagine we will ship distinctive worth to traders.
“This partnership has allowed us to introduce a product that not solely diversifies portfolios but additionally brings modern funding alternatives to Australia and New Zealand.”
John Burke, CEO of Bennelong additional said that the timing is opportune to carry a brand new ILS fund technique to the Australia and New Zealand market.
Burke stated, “With insurance coverage premiums rising globally in latest instances, an ILS technique like this could actually profit traders, as the upper premiums are handed via.
“The Australian market has had restricted entry to those belongings, and the present market setting presents a lovely alternative.
“Working with Leadenhall’s skilled crew to carry this providing to traders has been a pleasure, and we sit up for proceed working with them as we distribute the product to our institutional and wholesale traders.”
The LCP Insurance coverage Linked Securities Fund will allocate its capital to disaster bonds, offering traders with entry to the returns of pure insurance coverage danger overlaying pure disaster occasions.
The timing could possibly be opportune, as there was elevated curiosity in ILS amongst massive traders in Australia and New Zealand of late, with flows into insurance-linked securities (ILS) methods from the area having elevated and traders there highlighting their need to allocate to ILS fund methods of late.
