Leadenhall signs AUS-NZ ILS fund distribution agreement with Bennelong

Leadenhall Capital Partners LLP, the London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked investment manager, has signed a new ILS fund distribution agreement with Bennelong Funds Management, part of the BFM Group.

Under the agreement, Bennelong Funds Management will distribute the Leadenhall Capital Partners range of insurance linked securities (ILS) fund strategies to institutional investors in Australia and New Zealand.

Bennelong noted that ILS investments offer a relatively uncorrelated alternative asset that can help in diversifying risk and managing portfolio risk/return outcomes.

The fund distribution specialist notes that there remains a lack of access to ILS assets in the Australian market, while also highlighting the fact that, right now, the ILS asset class offers attractive spreads for investors relative to their long-term average.

Leadenhall Capital Partners manages a full range of ILS fund strategies, across catastrophe bonds, non-life private ILS instruments such as collateralized reinsurance with natural catastrophe and speciality lines risks, and alternative private credit strategies that feature life and health exposures.

John Burke, CEO of Bennelong, explained that the new agreement will allow his firm 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,” Burke said.

Adding, “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, further commented, “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.”

Distribution partnerships can help asset managers gain deeper access to regional institutional investors, through an established network or distributor, which in an asset class like insurance-linked securities (ILS) can help in raising the profile of a manager’s ILS strategies in new locations.