Bennelong Funds Management and Leadenhall Capital Partners have now opened the LCP Insurance Linked Securities Fund for investment.

After announcing the distribution agreement in October last year, the teams have been working to bring the insurance-linked securities (ILS) strategies to institutional investors in Australia and New Zealand.

The Fund provides access to ILS, a unique asset class with historically low correlation to traditional investment markets and economic conditions, offering a valuable opportunity for portfolio diversification.

John Burke, CEO of Bennelong, said it’s an opportune time to bring this to market.

“With insurance premiums increasing globally in recent times, an ILS strategy like this can really benefit investors, as the higher premiums are passed through.  

“The Australian market has had limited access to these assets, and the current market environment presents an attractive opportunity.

“Working with Leadenhall’s experienced team to bring this offering to investors has been a pleasure, and we look forward to continue working with them as we distribute the product to our institutional and wholesale investors.”

Lorenzo Volpi, managing partner of Leadenhall, emphasised the strategic significance of the partnership with Bennelong in launching the Fund.

“With Bennelong's strong local presence and expertise, we believe we can deliver exceptional value to investors.

“This partnership has allowed us to introduce a product that not only diversifies portfolios but also brings innovative investment opportunities to Australia and New Zealand.”

The ILS Fund invests in catastrophe bonds, offering investors access to pure insurance risk for natural catastrophe events such as hurricanes, floods and earthquakes.

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