Bennelong Funds Management has partnered with Leadenhall Capital Partners LLP to distribute its insurance linked securities (‘ILS’) strategies to institutional investors in Australia and New Zealand.
ILS have a historically low correlation to traditional investment markets and related economic conditions, offering an opportunity to assist in diversifying risk and managing portfolio risk/return outcomes. There is a lack of access to these assets in the Australian market, and the segment also currently offers attractive spreads for investors relative to their long-term average.
John Burke, CEO of Bennelong, said the agreement represents an opportunity for Bennelong to partner with a respected global brand and bring a unique, in-demand product to the Australian institutional market.
“Insurance-linked securities are in a sweet spot, with attractive spreads and strong potential growth, and can be an excellent diversifier for portfolios,” he said.
“Leadenhall has an experienced team and a strong reputation in this asset class, and we’re looking forward to working together to bring this in-demand product to more of the Australian and New Zealand market.”
Lorenzo Volpi, managing partner of Leadenhall, commented on the importance of the two organisations’ shared values and goals.
“We’ve searched for a partner in Australia and New Zealand that understands local investors and shares our commitment to client centricity. We believe Bennelong is an excellent fit, and are confident this will be a fruitful partnership.”
ILS are financial instruments that transfer insurance risk to capital markets.
