Bennelong Funds Management and Leadenhall Capital Partners have now opened the LCP Insurance Linked Securities (ILS) Fund for investment.
The ILS Fund invests in catastrophe bonds, offering investors access to pure insurance risk for natural catastrophe events such as hurricanes, floods, and earthquakes.
ILS is a unique asset class with historically low correlation to traditional investment markets and economic conditions, offering a valuable opportunity for portfolio diversification.
After announcing a distribution agreement in October last year, Bennelong and Leadenhall have been working to bring ILS strategies to institutional investors in Australia and New Zealand.
Mr John Burke, CEO of Bennelong, said, “With insurance premiums increasing globally in recent times, an ILS strategy like this can really benefit investors, as the higher premiums are passed through.
“The Australian market has had limited access to these assets, and the current market environment presents an attractive opportunity.”
Mr Lorenzo Volpi, managing partner of Leadenhall, said, “This partnership has allowed us to introduce a product that not only diversifies portfolios but also brings innovative investment opportunities to Australia and New Zealand.”
Bennelong develops and distributes actively managed equity funds, offering high-grade service and investment solutions to institutions, financial advisers, and direct investors.
Headquartered in London, Leadenhall Capital Partners is a global asset management company granting institutional investors access to insurance-related risks with a proven historically low correlation to the rest of the financial markets.