John Burke

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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John Burke

Bennelong Funds Management has partnered with Leadenhall Capital Partners LLP to distribute its insurance linked securities (ILS) strategies to institutional investors in Australia and New Zealand.

ILS have a historically low correlation to traditional investment markets and related economic conditions, offering an opportunity to assist in diversifying risk and managing portfolio risk/return outcomes. There is a lack of access to these assets in the Australian market, and the segment also currently offers attractive spreads for investors relative to their long-term average. 

John Burke, CEO of Bennelong, said the agreement represents an opportunity for Bennelong to partner with a respected global brand and bring a unique, in-demand product to the Australian institutional market. 

“Insurance-linked securities are in a sweet spot, with attractive spreads and strong potential growth, and can be an excellent diversifier for portfolios,” he said.

“Leadenhall has an experienced team and a strong reputation in this asset class, and we’re looking forward to working together to bring this in-demand product to more of the Australian and New Zealand market.”

Lorenzo Volpi, managing partner of Leadenhall, commented on the importance of the two organisations’ shared values and goals.

“We’ve searched for a partner in Australia and New Zealand that understands local investors and shares our commitment to client centricity. We believe Bennelong is an excellent fit, and are confident this will be a fruitful partnership.”

ILS are financial instruments that transfer insurance risk to capital markets.

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