Cambridge underscores its ILS advisory capability, sees asset class as valuable diversifier

Cambridge Associates, the global investment firm that provides specialist advisory and portfolio construction services, highlights insurance-linked securities, seeing the asset class as a valuable diversifier for client portfolios.

In a world full of uncertainty, the company believes liquid diversifiers, such as catastrophe bonds and ILS are increasingly a relevant asset class for institutional portfolios.

Cambridge Associates has formalised a specialist ILS focused advisory team and is adding one new member to support its experts as they encounter growing interest from clients in the asset class.

Michael Knecht, Managing Director Investment, at Cambridge Associates oversees the ILS business line at the company, overseeing more than USD 2.5 Bn in ILS investments as of March 2026.

Joe Tolen, a Senior Director for the Credit Investments Practice leads ILS research efforts and is responsible for the firm’s research output around the asset class.

Siti Dawson, a Senior Director at Cambridge Associates and experienced catastrophe bond and ILS product specialist, alongside ILS business line leader Michael Knecht manages ILS-specific mandates for clients.

In addition, a new team member will be joining the ILS team in September 2026, as Cambridge continues to invest in a specialised and integrated advisory model for ILS opportunities, combining its dedicated research with client coverage.

Michael Knecht explained to us that, “In an environment that may be shaped by geopolitical, macroeconomic and valuation uncertainty, investors may place greater value on liquid diversifiers.

“In that context, ILS may continue to play an important role, and our continued investment in a specialised advisory and research team reflects its ongoing focus on the asset class.”

“Cambridge Associates’s investment in its ILS team should be seen as a sign of its commitment to the asset class and maintaining our strong research quality,” Knecht explained.

“With liquid diversifiers an often-discussed topic within client discussions, a number of asset class building-blocks are under consideration. Reinsurance and insurance-linked securities are viewed as one relevant area of focus for these investors,” Knecht said.

Joe Tolen stated, “ILS investments can offer return drivers that are generally distinct from traditional financial market risks. The asset class may help diversify portfolios exposed to equities, credit and private markets, while in the current environment, some investors may focus not only on diversification in general, but also on liquid forms of diversification, which brings ILS and reinsurance up as one relevant area.”

Cambridge Associate’s investment in its ILS team shows that it views the asset class as a relevant diversifying asset for its client portfolios, while also indicating its commitment and support for its specialist ILS capability.