Schroders has launched a Flexible Cat Bond fund which has been designed to invest partly in private placement cat bonds and to take tactical short positions.
The new fund is managed by Daniel Ineichen, the head of insurance-linked strategies at Schroders and formerly with Secquaero Advisors, a reinsurance specialist boutique that works with Schroders on ILS strategies under an exclusive arrangement.
Schroders said the Flexible Cat Bond fund can invest globally, but will be biased toward regions such as the US, Western Europe and Japan that have high levels of wealth accumulation and insurance penetration. Ineichen will have the flexibility to invest up to 25% in private placement cat bonds, known as "cat bond lites".