Securis Investment Partners has launched its Securis Catastrophe Bond Fund, allowing investors to participate directly in pure catastrophe event risk.
This is the firm’s first UCITS compliant fund launched by Securis, a specialist investment manager of insurance risk-related assets, including insurance linked securities (ILS).
The new fund will be a sub-fund of the Northill Global Funds ICAV, and will target a net return of 4 to 5 percent.
It will invest in a portfolio of cat bonds, with investments spanning a range of securities and geographies. It will focus on long-term value, charging only an annual management fee, related to returns and liquidity available.
According to Securis, the launch of the fund is related to an expected growth of the reinsurance market, as it expands in to new lines of business.
Securis also noted the increase in catastrophe risk due to ‘coastal urbanisation’ and volatile climate change trends, plus emerging risks such as terrorism, cyber risk and flood risk, which are all adding to growth of the ILS market.
Rob Procter, CEO of Securis Investment Partners, said: “We believe the cat bond market has reached a state of maturity which makes this an opportune and exciting time for Securis to bring its first UCITS-compliant fund to market. So doing enables us to make best use of our strong cat bond market presence and leverage our existing analytical and portfolio construction capabilities, whilst broadening our investor base.”
“As the supply of collateralised protection via cat bonds continues to prove attractive to both existing and new buyers of reinsurance protection, the application of ILS is widening as a risk transfer solution for issuers and investors alike. We believe that ILS will continue to favourably compensate investors for the risks they take on.”
