Plenum Investments Ltd.

The Artemis Insurance-Linked Securities Investment Managers & Funds Directory is a one-stop resource for information on insurance or reinsurance linked investment managers and their ILS fund strategies.

Plenum Investments Ltd. - snapshot

  • ILS manager or company name: Plenum Investments Ltd.
  • Location (HQ / Domicile): Zurich, Switzerland
  • Date of launch: Sep 2010 (launch ILS business)
  • Assets under management *: $430 million (AuM as at June 2020, $400mn in the Plenum Cat Bond Fund)
  • Website link: Plenum Investments Ltd. website

Plenum Investments Ltd. - Details

Company profile:

Plenum Investments Ltd. is an independent investment manager specializing in insurance risks for institutional and professional clients. The core competence lies in the management of natural catastrophes, longevity risks and regulatory insurance capital.

The investment focus is on transparent and sustainable investment solutions. Plenum Investments Ltd. is an established provider in the UCITS CAT Bond Fund segment and is a leader in the sustainability analysis of capital market-based transfers of insurance risks.

As a licensed asset manager, Plenum Investments Ltd. has been subject to the Swiss Collective Investment Schemes Act (KAG) since 2001. It is overseen by the Swiss Financial Market Supervisory Authority (FINMA).

Plenum is owned (90%) by its partners, all active in the current management or board of the company.

Team size and structure:

10 people (portfolio management 6, risk management 1, sales & back office 3)

Number of strategies (how many funds, sidecars or strategies):

4 – two mutual funds (UCITS), one AIF fund, one managed account

Offers private managed accounts?

Yes

Plenum CAT Bond Fund

The Plenum CAT Bond Fund aims to achieve an attractive return over money market investments by investing in a globally diversified portfolio of CAT bonds.

The management approach of the core fund aims to minimize the exposure to a single insurance event risk while achieving a moderate target return (Money Market Rates plus 400 basis points) for investors.

Our unique investment selection and management approach ensures minimal exposure in case of a natural catastrophe. Peril and region exposure is limited by investment guidelines.

The information below is as of 31.12.17 for the USD Retail Class of the fund. The performance for the P share class would be approximately 90bps higher because of a lower management fee.

Returns by year:

2011: -3.14%, 2012: 6.51%, 2013: 5.53%, 2014: 2.74%, 2015: 1.86%, 2016: 3.76%, 2017: 0.25%, , 2018: -1.01%, 2019: 1.95%

Type of investment strategy (fund, sidecar etc):

Open-ended UCITS mutual fund

Launch date:

6th Sep 2010

Underlying asset types:

Cat Bonds

Annualised return:

1.92% (Retail share class)

Best monthly return:

1.88%

Return since inception:

20.10%

Sharpe ratio:

0.52

Percent positive months:

72%

Annualised standard deviation:

2.73% (36 months)

Plenum Insurance Capital Fund

Objective of the fund is to manage high-yield insurance risks more efficiently. The self-developed “tail-to-tier” approach mitigates concentration risks in US wind and capitalizes on the yield spread between CAT bonds and subordinated bonds of European insurers.

The weighting of the two asset classes is based on a proprietary relative value approach. Adding subordinated bonds significantly reduces the tail risk of CAT bond portfolios focused on US wind without sacrificing yield. Under the motto “tail-to-tier”, we manage the conflict between high returns and significant tail risk. The fund approach provides investors with a new way to invest in the exciting asset class of high-yield CAT bonds.

The fund has a strong diversifying effect in multi-asset portfolios and is a suitable component for fixed income allocations, which in many cases require a strategic adjustment because of the low interest environment. Currency-hedged share classes in CHF, EUR and USD have been issued.

Type of investment strategy (fund, sidecar etc):

Open-ended UCITS mutual fund

Launch date:

29th May 2020

Underlying asset types:

Cat Bonds/Insurance Bonds (Tier 1, 2)

Annualised return:

n.a.

Best monthly return:

n.a.

Return since inception:

n.a.

Sharpe ratio:

n.a.

Percent positive months:

n.a.

Annualised standard deviation:

n.a. (36 months)

 

The Plenum CAT Bond Fund is registered for public distribution in

• Liechtenstein
• Germany
• Austria
• Netherlands
• Luxembourg
• Switzerland
• Italy
• Spain
 

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Disclaimer:

The Artemis Insurance-Linked Securities Investment Managers & Funds Directory is provided as-is. Best efforts are made to ensure the contents are accurate at the time of publication but there may be some omissions. Please contact Artemis should you require a change to your listing.