Securis to float insurance fund in London
Securis Investment Partners is to float a fund investing in various insurance risks that in aggregate aim to generate annual returns of 12%, half of which will be distributed in semi-annual dividends.
The Securis Income fund will be listed in London and feed into Securis I Master fund, a six-year old vehicle investing in various insurance- and reinsurance-linked securities.
“These risks, which focus on mortality and longevity expectations or physical loss resulting from natural catastrophes, have historically demonstrated a negligible link with the performance of many financial markets,” Securis said.
Espen Nordhus, managing partner and co-founder of Securis Investment Partners, said: “By building a balanced portfolio of risk across both life and non-life classes through private and public transactions, Securis offers potential for impressive, stable returns.”
Rob Procter, also a managing partner and co-founder of the $834m asset manager, said: “Our investment strategy has delivered strong returns that have been uncorrelated to many financial markets whilst generating a consistent cash yield.”
Its listed fund is believed to be the first such investment vehicle focused on these areas of the capital markets.
Since October 2005 the unlisted variant made 11.6%, on annualised volatility of 1.9%.
The offering period for the Guernsey domiciled vehicle closes on 11 March.
The placing agent for the IPO will be Dexion Capital, the financial adviser Katalyst Partners, and the sponsor Dickson Minto W.S.
Investors in Securis Income will pay 1.5% of their assets annually, and 20% performance fee, subject to a high watermark.