London, UK based insurance-linked securities investment manager Leadenhall Capital Partners has announced that thanks to new inflows of investor capital they have now cleared $650m in assets under management for the first time. Leadenhall’s two funds specialise in investment in insurance-linked security and catastrophe bond instruments.
New investments flowing into the Leadenhall Value Insurance Linked Investment Fund PLC and the Leadenhall Diversified Insurance Linked Investment Fund PLC in the funds total $65m and come from pension funds in the UK and other parts of Europe.
The two funds, which are both domiciled in Ireland and offer investors a way to tap into the returns of the insurance and reinsurance markets, have grown from $100m when launched in October 2009 to $332m today. Leadenhall also look after another $320m in managed accounts invested in ILS instruments.
Leadenhall said that they have seen much of the growth in the last year as interest in ILS has grown. For the first year or so their funds attracted smaller investors, growing organically to $135m under management by mid-2011. Since then they have attracted larger investors such as pension funds as ILS have become more recognised as an asset class worthy of allocating funds to for their attractive returns and non-correlation properties.
Leadenhall Chairman John Wells said: “I am extremely pleased with the growth of our funds, which have delivered what they said they would do for investors in terms of returns, low correlation with fixed income markets and equities, and low volatility.”
“Increasingly, institutional shareholders are recognising the value of this asset class, and also the value proposition of Leadenhall, which is a unique combination of our capital markets experience and the resources and expertise of Amlin as a traditional insurer and reinsurer.”
“Our growth over the past year has been extremely strong where we have increased the funds and still maintained a level of return that has satisfied the investor objectives of our clients.”
The growth Leadenhall have seen in the last twelve months is testament to the attractiveness of the cat bond and ILS sector as an investment proposition right now. With the additional capital under their management Leadenhall have moved up to become one of the larger investors in the sector in London.