Press Release: Fund volume of the Plenum Insurance Capital Fund with innovative tail-to-tier investment approach exceeds now USD 400 million.
Plenum Investments Ltd. is pleased to announce that the fund volume of the Plenum Insurance Capital Fund, which was launched three and a half years ago, has exceeded USD 400 million.
“The Plenum Insurance Capital Fund has been well received by the market as our approach offers investors a new way to achieve attractive returns in the CAT bond market with reduced tail risk.” says Daniel Grieger, Lead Portfolio Manager of the fund and CIO of Plenum Investments Ltd. “We also take advantage of the unique relative valuation of the two asset classes of CAT bonds and insurance bonds in order to actively manage the seasonality of US hurricane risks.” Dirk Schmelzer, who is responsible for managing the CAT bond allocation, adds: “The capital employed is more efficiently deployed as we actively reduce hurricane positions after the hurricane season. This active approach means that our tail-to-tier investment approach currently has a capacity limit of USD 1 billion.”
Rötger Franz, responsible for the portfolio management of subordinated insurance bonds, adds: “In many respects, subordinated bonds of European insurers are complementary to CAT bonds. The subordinated debt issuers have usually manageable natural catastrophe exposures in the USA. Just like CAT bonds, subordinated insurance bonds enable insurers to write more business, but unlike CAT bonds, there is no direct catastrophe risk transfer to the capital market.”
The Plenum Insurance Capital Fund is a UCITS fund that invests mainly in CAT bonds. The aim of the fund is to manage insurance risks more efficiently than conventional CAT bond funds.
In times of rising default rates of high-yield bonds, great interest rate uncertainty and growing geopolitical risks, investors are turning to CAT Bonds and attractive corporate bonds with the lowest default rates as an investment alternative, in the spirit of “high yielding but not high yield”.
Plenum Investments AG is an independent investment manager specializing in insurance risks for institutional and professional clients. Its core competence lies in the management of natural catastrophe risks, longevity risks and regulatory insurance capital. The investment focus is on transparent and sustainable investment solutions. Plenum Investments AG is one of the established providers in the UCITS CAT bond fund segment and is a leader in the sustainability analysis of CAT bonds.
For further information, please contact us directly at the address below. We look forward to hearing from you.
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