AXA owned Architas ups allocation to CATCo retro reinsurance fund

Architas, a specialist investment manager focused on multi-manager solutions for clients and part of the AXA Group, has increased its allocation to the London stock exchange listed CATCo Reinsurance Opportunities Fund Ltd.

Displaying an increasing appetite for access to the retrocessional reinsurance fund, which is managed by Bermuda based CATCo Investment Management, Architas lifted its allocation to the fund over the 5% reporting threshold on the 13th February.

Architas operates a number of multi-manager strategies, ranging from blended and passive strategies, to offerings which focus on specific asset classes or that allow advisors to build their own portfolios.

On the 13th Feb Architas acquired 2.28m shares in the CATCo Reinsurance Opportunities Fund, increasing its total holdings from 11,403,393 to 13,683,393 shares. The increased stake gives Architas 5% of the total voting rights of the retrocessional reinsurance fund.

The shares are utlimately held by two ICVC’s (investment companies with variable capital, also known as open-ended investment companies) owned by Architas Multi-Manager Limited, Architas Multi-Manager Global Solutions ICVC and Architas Multi-Manager Investments ICVC.

Architas has in the past held allocations to the CATCo Reinsurance Opportunities Fund in its Architas Multi-Asset Active Intermediate Income Fund and Progressive Fund, as well as a fund of funds strategy the Architas Diversified Real Assets Fund.

As we wrote yesterday, these multi-asset class managers are increasingly discovering the reinsurance and insurance-linked securities (ILS) asset class and despite returns being down in the sector, the benefits that the low-correlated insurance-linked assets can provide are continuing to grow the appetite for ILS.