Swedish catastrophe bond and insurance-linked securities (ILS) investment fund manager Entropics Asset Management AB entered into an agreement for its UCITS cat bond fund to be distributed to Swedish bank and insurance group Skandia’s clients.
The SEF Entropics Cat Bond Fund will be made available to policyholders and investment clients of Skandia holding deposit linked insurance or savings accounts.
With Skandia, a mutual company governed by its policyholders, having billions of assets under management from millions of clients, the arrangement will greatly increase Entropics reach, putting its cat bond fund in front of new potential investors.
“It is very gratifying that Skandia opens Entropics to its savers. Entropics is a Nordic pioneer and globally leader in responsible cat bond investments. The fund thus suits well in the offering of a company that emphasizes responsibility and sustainability in its fund offer offering,” commented Robert Lindblom, CEO of Entropics.
Entropics has signed distribution agreements for its UCITS cat bond fund with a number of Scandinavian banks, targeting these as a way top expand the ILS managers’ reach
The SEF Entropics Cat Bond Fund is a UCITS fund, allowing it to be offered to retail investors through an appropriate share class, hence these distribution agreements can help Entropics to reach high net worth retail investors.
Of course, cat bonds should not be seen as a core investment asset class for pure retail focused investors. But as a complementary asset, within a balanced and diversified portfolio, ILS has benefits that cannot be found elsewhere and are increasingly attracted to more sophisticated retail investors.
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