Global investment management group Schroders plc has increased the stake it holds in reinsurance and insurance linked securities (ILS) investment fund, the Blue Capital Global Reinsurance Fund, to over 16%, further demonstrating the asset managers liking for insurance linked investments.
Schroders holds its stake in the London and Bermuda stock exchange listed Blue Capital Global Reinsurance Fund within various multi-asset class investment funds and mandates it manages on behalf of clients.
The stake previously sat at just over 10% of the outstanding shares of the Blue Capital Global Reinsurance Fund, after Schroders increased its stake in December 2015.
Now Schroders holdings in the Blue Capital Management ILS fund has risen to almost 16.2% of the outstanding shares and voting rights of the fund, after the asset manager took its holdings to 32,089,016 shares.
Schroders has a clear appreciation for insurance and reinsurance linked investments, holding a large allocation to the other UK stock exchange listed ILS fund, the CATCo Reinsurance Opportunities Fund Limited, a listed reinsurance-linked investment fund operated by Markel CATCo.
Schroders also has more direct involvement in ILS and catastrophe bond investments, through its cat bond and collateralized reinsurance funds which it operates and its stake in ILS specialist adviser, structurer and manager Secquaero Advisors.
In fact, this year Schroders stake in its partner in the ILS business Secquaero was increased from the 30% originally announced in April 2013, up to a 50.1% majority stake as of the 1st February 2016, as Schroders demonstrated its commitment to the ILS asset class and desire to grow in this area.
Schroders directly managed ILS assets sit just under the $2 billion mark. Alongside the major stakes in the listed ILS funds, the investment manager has a growing stake in the ILS market.
Schroders is one of the largest asset managers in the world, with around $460 billion under management at the end of June 2016.
The Blue Capital Global Reinsurance Fund is one of the few opportunities in ILS that can be more easily accessed by investors, due to its stock exchange listing and the liquidity that provides.
As a result it has proved popular with other asset managers looking to add an element of ILS and reinsurance to their multi-asset class fund portfolios, looking to add a source of low correlated and stable returns to their strategies.