Insurance investment manager Twelve Capital raises almost $400m for UCITS cat bond

Independent insurance investment manager Twelve Capital said it has raised close to $400 million in 18 months for its UCITS cat bond offering.

UCITS, also known as ‘undertakings for the collective investment in transferable securities’ are investment funds regulated by the European Union and intended to create a barrier-free market for collective investment funds.

Describing the funding activity as a “strong inflow”, Twelve Capital said the money had come in from Switzerland, Germany, the Netherlands and the UK.

The firm said its liquid cat bond strategies have delivered attractive investment performance in 2019 year-to-date despite a challenging market environment. With further growth in mind, the investment firm is looking at broadening its activities into France and the Nordics and possibly even markets outside Europe.

“The recent repricing in cat bond spreads has allowed new investors to enter the market at a very attractive time,” said Florian Steiger, director portfolio management, strategy head cat bonds. “Meanwhile, existing clients have been able to increase their allocation to the asset class. These inflows have allowed for the purchase of cat bonds in primary and secondary markets during recent phases of volatility, which has been of benefit to the strategy’s overall risk-return profile.”

Urs Ramseier, CEO and chief investment office at the investment firm, added: “Twelve Capital is a leading manager for liquid cat bond strategies for professional investors with offerings both in UCITS and managed account format.

“This recent demand shows the continued growth and recognition of Twelve Capital in the ILS investor space.”

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