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 buyers 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 may see Bennelong Funds Administration distributing the Leadenhall Capital Companions present vary of insurance coverage linked securities (ILS) fund methods to institutional buyers 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 can put money into disaster bonds and be supplied to buyers throughout Australia and New Zealand.
The 2 companies mentioned the brand new ILS fund technique will carry the distinctive asset class to institutional buyers within the area, providing all the advantages of its traditionally low correlation to conventional funding markets and financial situations, offering buyers with a useful alternative for portfolio diversification.
Lorenzo Volpi, Deputy CEO and Managing Associate of Leadenhall, highlighted the significance of the strategic partnership with Bennelong in launching the brand new cat bond fund.
Volpi defined, “With Bennelong’s sturdy native presence and experience, we consider we will ship distinctive worth to buyers.
“This partnership has allowed us to introduce a product that not solely diversifies portfolios but in addition brings progressive 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 mentioned, “With insurance coverage premiums rising globally in current instances, an ILS technique like this could actually profit buyers, as the upper premiums are handed by means of.
“The Australian market has had restricted entry to those property, and the present market setting presents a pretty alternative.
“Working with Leadenhall’s skilled workforce to carry this providing to buyers has been a pleasure, and we stay up for proceed working with them as we distribute the product to our institutional and wholesale buyers.”
The LCP Insurance coverage Linked Securities Fund will allocate its capital to disaster bonds, offering buyers with entry to the returns of pure insurance coverage danger masking pure disaster occasions.
The timing may very well be opportune, as there was elevated curiosity in ILS amongst massive buyers in Australia and New Zealand of late, with flows into insurance-linked securities (ILS) methods from the area having elevated and buyers there highlighting their need to allocate to ILS fund methods of late.
