Plenum Investments, a Zurich-based specialist cat bond and insurance-linked securities (ILS) investment manager with assets under management exceeding $1 billion for the first time, benefited from investor demand for its cat bond strategy.
Plenum Investments has managed insurance-related assets since its first catastrophe bond fund strategy in 2010.
Since then, the investment manager has expanded to offer an insurance bond fund strategy, a longevity-linked insurance fund, and a second catastrophe bond fund designed to generate higher returns for investors.
Plenum has a track record of managing catastrophe bond funds stretching back more than a decade and has benefited from increased investor demand for catastrophe bond investments over the last year.
ILS Investment Management last reported assets of $763 million on January 1, 2023.
As of June 30, the total has exceeded $1 billion, an increase of more than 31% in just six months.
Among them, Plenum Investments catastrophe bond fund assets amounted to 780 million US dollars.
A particular highlight for Plenum Investments is its Plenum CAT Bond Dynamic Fund, which launched two years ago and now has $100 million in total fund assets, helping to fuel that growth.
Dr. Rainer Grünig, CEO of Plenum, comments on this success: “This is a major breakthrough and a huge success for Plenum. I am particularly pleased that our fund assets have grown steadily over the years and, most importantly, that it is growing organically, showing that our specialization and focus are paying off.
“A result like this was only possible when the company and the client came together. At this point, on behalf of our entire team, I would like to thank all the clients who made this possible, especially those who have been with us on this journey from the very beginning .”
Daniel Grieger, CIO of Plenum, added: “We are benefiting from the current and future growth of the CAT bond market, which has impressively delivered on its diversification proposition since its inception 27 years ago. Rising demand for insurance due to changes and a sharp increase in investor awareness of the asset class will continue to drive the growth of this market.
“Our expertise in insurance bonds and longevity strategies complement our fund offerings and will continue to thrive and deliver value to our investors under our CAT bond strategy.”
Dirk Schmelzer, Lead Portfolio Manager, Plenum CAT Bond Dynamic Fund also commented: “The strong demand for the Plenum CAT Bond Dynamic Fund is based on investors’ growing awareness of the limited capacity of the CAT bond market.
“In order to construct optimal portfolios, investors need to be aware of the limitations of market size in the context of the portfolio. We believe our limitations on fund size will lead to better outcomes for our investors.”
Plenum currently manages five investment funds that allocate natural catastrophe risk through the cat bond market, as well as insurance bonds and longevity risk.
To view information on the many specialized ILS fund managers and reinsurers offering ILS-style investment opportunities, visit our Directory of insurance-related securities investment managers and funds.