Twelve Capital to focus on growth of own-brand ILS funds

Twelve Capital, the Zurich headquartered insurance and reinsurance linked investment fund manager, is targeting continued growth of its assets within its own-brand insurance-linked securities (ILS) and catastrophe bond funds.

Twelve Capital has reached $4 billion of ILS and other reinsurance linked assets and is expanding its product range for ILS investors under its own brand, across catastrophe bonds, collateralised reinsurance and its Multi-Asset Best Ideas strategy.

In the past, Twelve Capital managed a number of white label cat bond fund strategies for private banks in Switzerland, but is now set to focus on expanding its own distribution and product capabilities across its target markets.

We explained this earlier today, in our article on Falcon’s cat bond funds moving over to management by Solidum Partners AG, which is seemingly in response to Twelve Capital’s shift in focus to its own-branded ILS funds.

Twelve Capital launched its Irish UCITS Cat Bond fund offering to focus on direct fundraising from institutional investors across Europe, the manager said.

This UCITS cat bond fund platform allows Twelve to “fully exploit opportunities in the Cat Bond space and leverage the team’s broad capabilities.”

Twelve Capital said that this cat bond fund has already reached AUM in excess of US $200 million in the 15 months since its launch in February 2018 and the manager expects this to grow further over the coming weeks, thanks to strong investor demand and good performance on a risk-adjusted basis.

In addition, Twelve Capital’s Luxembourg domiciled UCITS Best Ideas fund offering, which is a Multi-Asset reinsurance fund that seeks to exploit the seasonality of US hurricanes, has reached assets of approx. US $170 million and now has a three-year track record. Twelve said that this Best Ideas strategy has also received strong ratings from fund rating firms and specialised investment consultants.

Twelve Capital also mentioned the fact that from August it will no longer be the investment manager for the two Falcon catastrophe bond funds, having managed them for more than six years.

Urs Ramseier, CEO and CIO of Twelve Capital, commented on the news, “Twelve Capital’s business strategy has evolved over the last five years towards managing its own institutional ILS and Multi-Asset offering with its own branded UCITS, SIF and Single Investor platforms. As at June 2019, Twelve Capital has offerings in Switzerland, Germany, France, Benelux, the Nordics and the UK, with further markets being developed.”

With a long track record in managing ILS assets and a recognised brand, it makes sense for Twelve Capital to increase the focus on its own-brand ILS fund strategies, as it targets further growth and expansion.

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