Schroders Capital has launched a new catastrophe bond fund designed to issue products for U.S. investors, and earlier this month, Schroders Capital Coda Fund from two raised $70 million from clients.
Schroders Capital Coda Fund is a Cayman Islands-domiciled Insurance Linked Securities (ILS) fund that primarily allocates capital into tradable public ILS instruments with a focus on global natural catastrophe risk.
This is a continued expansion of Schroder Capital’s US ILS ambitions, building a purpose-built vehicle that is more attractive to US institutional investors.
Of course, Schroder Capital is already one of the largest asset managers of catastrophe bond funds, managing more than $3 billion in ILS, and its ILS strategy focuses on less liquid parts of the market.
Longtime Schroders Capital executive Daniel Ineichen will serve as lead portfolio manager for the Coda cat bond fund.
The Coda fund “is designed to cater to U.S. investors seeking to benefit from Schroders Capital’s long-term track record in the ILS space since 2011,” the firm said.
The Coda Cat Bond Fund is an open-ended, actively managed strategy that provides twice-monthly liquidity to accredited investors.
Its primary objective is to generate absolute returns with low correlation to traditional assets, as is typical in cat bond and ILS strategies, while also seeking low interest rate duration and low credit risk.
Stephan Ruoff, Global Head of ILS at Schroders, said: “The successful launch of the Schroders Coda fund reinforces our commitment to expanding the capabilities of Schroders ILS.
“Furthermore, it marks an important milestone for Schroders’ ILS division as we continue to further build our brand in the U.S. market, offering investors the opportunity to potentially generate returns that have historically been associated with broader financial markets Nothing to do.”