Plenum Investments Ltd., the independent Zurich, Switzerland based insurance-linked securities (ILS) and catastrophe bond fund manager, has made its UCITS cat bond fund available on the Swiss Exchange to offer investors daily liquidity.
The Plenum Cat Bond Fund, the ILS manager’s UCITS ILS offering registered for public distribution in AT, CH, DE, LI, LU and NL, is the first such insurance linked investment offering to be available for trading at the Swiss Exchange (SIX) in order to provide such frequent liquidity to investors.
The move sees Swiss bank Julius Baer & Co. acting as market maker for the fund exchange trading, supporting the liquidity opportunities for investors. Three classes of retail shares will be offered for trading, in USD, EUR and CHF currencies. All classes will be traded in the sponsored fund segment of the SIX.
Plenum sees the move as enhancing its offerings to investors with the added option of daily liquidity, facilitating greater access to cat bonds as a portfolio management tool and meeting investment standards that many investors require. Being available on SIX allows investors interested in cat bonds to access the fund as easily as trading in shares, creating new opportunities for them to use an ILS investment as part of their asset diversification and portfolio structuring processes.
Enabling investors to access catastrophe bonds as an asset class, with daily liquidity opportunities provided thanks to exchange trading, is an innovative move by Plenum that will ease access to the insurance linked asset class for some investors.
Having access to cat bond investments via an exchange with daily liquidity available will meet the mandates of various investment strategies, perhaps helping to further broaden access to the asset class, delivering the attractive performance and low correlation qualities of an investment in cat bonds, alongside maximum liquidity.
“We are convinced that this was the last hurdle to be cleared in order to invest in line with strong compliance rules. Fund of funds in particular will benefit from this novelty,” commented Rainer N Gruenig, CEO of Plenum Investments Ltd.