Plenum Investments, the Zurich-headquartered manager of insurance-linked securities (ILS) and related assets, has renamed its longest-standing catastrophe bond fund strategy, adding the word “defensive” to reflect its strategy to reduce tail risk exposure, becoming the Plenum CAT Bond Defensive Fund.
The manager’s flagship Plenum CAT Bond Fund, as it was previously called, has a track record dating back to September 2010, so is one of the longest-standing strategies in the market.
Nothing else has been changed about the UCITS cat bond fund strategy, aside from the inclusion of the word Defensive in its name from May 3rd, so the investment strategy, risk positioning, regulation and distribution remain the same.
Dirk Schmelzer, Head Portfolio Manager ILS/CAT Bonds and Partner at Plenum Investments AG, commented, “As we offer two funds with different risk/return profiles in the CAT Bond segment, we have decided to include a reference to the fund positioning into the fund name. This will help to differentiate it from the existing Plenum CAT Bond Dynamic Fund, which targets market average risk.
“The investment objective of the Plenum CAT Bond Defensive Fund is to pursue a reduction of the market tail risk by up to 50%. The Plenum CAT Bond Defensive Fund is therefore one of the most conservative CAT bond funds in the world.”
Plenum also operates a self-imposed restriction on capacity for its cat bond funds, which it believes helps to ensure competence in terms of risk and investment selection, as well as providing optimal liquidity terms for its investors.
Dr. Rainer Grünig, CEO and Managing Partner, further explained, “The new name will provide more transparency and help investors to compare the fund with peers. Our decision to change the fund name serves solely to improve the fund’s differentiation among CAT Bond funds.”
Grünig added, “On behalf of the entire Plenum team, I would like to take this opportunity to thank all those who have made the success of our USD 1 billion CAT Bond Fund product line possible.”
Plenum Investments is just one of the specialist managers of cat bond and ILS fund managers listed in our Insurance Linked Securities (ILS) Investment Managers & Funds Directory.
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