Cedar Trace and Sage Advisory partner on ILS enhanced credit investment opportunities

Cedar Trace Group, the Bermuda based insurance, reinsurance and asset management specialist, has established a partnership with Austin, Texas based fixed income and alternative solutions manager Sage Advisory Services Ltd. Co., to deliver insurance-linked securities (ILS) enhanced credit opportunities to investors.

Recall that, Cedar Trace is the new and recently adopted name for Mereo Advisors and the company continues to have a close strategic alignment with Mereo Insurance, the Bermuda regulated reinsurance company.

Sage Advisory Services is an investment manager with almost 30 years of experience in fixed income, responsible investing and alternative solutions.

The pair have revealed a collaboration to deliver a new and innovative offering of investment products that feature insurance-linked securities (ILS) and credit opportunities, under the branding of the Lares Funds.

This is something unique and brings together two asset classes that are growing in popularity and have complementary features, while also having the potential to deliver attractive alternative return streams for sophisticated and institutional investors.

The ILS and credit investment portfolios will be jointly advised by the two companies.

Sage Advisory brings extensive expertise in fixed income and alternatives, while Cedar Trace brings specific ILS expertise, in catastrophe bonds, private ILS such as collateralized reinsurance, as well as other re/insurance related opportunities.

In addition, Cedar Trace’s relationship with Mereo Insurance could also offer access to areas of the reinsurance market less-accessible through more traditional forms of ILS, such as cat bonds.

The aim is to deliver, “lowly-correlated, yield-enhanced total return strategies for institutional investors, family offices, and allocators seeking elevated, diversified, and diversifying return opportunities,” the companies explained.

“We are excited to partner with Cedar Trace to bring groundbreaking ILS enhanced credit opportunities to our clients,” explained Robert G. Smith, President of Sage Advisory Services.

“Sage’s nearly three decades of fixed income expertise, paired with Cedar Trace’s unparalleled ILS capabilities, will create a powerful solution for investors seeking stability and enhanced returns.”

Lawrence Minicone, CEO of Cedar Trace, further commented, “We are thrilled to partner with Sage. Sage is an industry thought leader with an exceptional track record of expertise, integrity, and success.

“By combining our ILS capabilities with Sage’s credit and fixed income proficiency, we are aiming to deliver enhancing and diversifying risk-adjusted returns to investors.”