Press Release: Plenum European Insurance Bond Fund now exceeds EUR 100 Million
Plenum European Insurance Bond Fund now exceeds a total AUM of EUR 100 Million. The fund was launched in 2021 as a UCITS fund with daily liquidity. It exclusively invests in subordinated bonds issued by European insurers and has a strong focus on Restricted Tier 1 instruments (RT1) which usually yield around 200 basis points above Tier 2 bonds of the same issuers.
Rötger Franz, Lead Portfolio Manager of the fund, comments: “In contrast to banks, insurance companies are not exposed to a bank-type run-risk. This gives companies more time to react and their tool box to address any problems is well established and effective. All of this points to the relative attractiveness of insurance companies over banks.”
Daniel Grieger, CIO and also Portfolio Manager of the fund, says: «Typical financial credit funds are heavily overweight to banks, AT1 bonds in particular, with only marginal positions in the insurance sector. This fund is the ideal addition to any portfolio that holds such a bank-heavy fund. Even investors who usually underweight financials should look at this niche-asset class.»
In-depth fundamental analysis, a focused approach and the regular exchange with the decision makers of the issuers are part of a strategy to capitalize on the dynamics of the insurance industry.
«Defaults of insurance companies are extremely rare – since the introduction of Solvency II back in 2016 there has been not a single default in our investment universe. All of this results in very reliable cash flows investors can benefit from.», says Rötger Franz.
The fund is suited for investors aiming to strengthen the resilience of their portfolios in the High Yield segment. It provides a solution to improve the risk return ratio in the segment of bonds with a current average BBB rating. Its year to date performance now exceeds 10% in all EUR hedged share classes.
Currency-hedged share classes are available in CHF, EUR and USD. The duration risk is limited to five years. The fund is classified under Article 8 of the European Disclosure Regulation.
We would like to thank our investors for the trust placed in us and their commitment to support our new fund from the outset.
For further information, please contact us. We look forward to hearing from you.
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