AUM ASSET MANAGEMENT LAUNCHES ILS OCEAN FUND INVESTING IN INSURANCE-LINKED SECURITIES
- ILS Ocean Fund structured with a Barbados captive, the first of its kind in this jurisdiction, modeled after Bermuda ILS funds
- Invests in insurance-linked securities across geographies and insurance sectors and aims to achieve a robust return over money market investments, with low correlation to financial markets
SLIEMA, Malta, Nov. 17, 2022 /PRNewswire/ -- AUM Asset Management Ltd. ("AUM Asset Management"), an independent investment management company that provides investment and fund solutions, asset management and advisory services to institutional investor and family office clients around the world, announced today the launch of its ILS Ocean Fund ("The Fund"), a Cayman Islands exempted company incorporated with limited liability under the Companies Act on 4 January 2022.
The Fund invests in a globally diversified portfolio of dollar-denominated, insurance-linked securities ("ILS") instruments in a diversified set of geographies and aims to achieve an attractive return over money-market investments (risk-free rate plus 3%), with low correlation to fluctuations in financial markets through special purpose vehicles ("SPVs") that are set up specifically and exclusively to hold and manage such portfolios. The ILS investments span a wide range of insurance sectors, including but not limited to non-life, property, casualty, motor, marine cargo & hull, surety and other miscellaneous sectors, which provide the Fund with opportunities that potentially may not be easily accessible by other investors.
The underwriting strategy for The Fund will mirror that of the captive insurance company in which it is invested, Ocean International Reinsurance Co Ltd. ("Ocean RE"), and will take a vertical cut of all lines of business (excluding Life Business), supported by the actuarial models based on share capital of USD$10M. Ocean Re takes into account the complexity and process requirements of each potential captive program, as well as local market practices, legislation, acquisition costs, taxes, income and reinsurance costs, among other factors, to generate competitive offers for each client, seeking to create a "win/win" scenario in each business.
The Fund is the first ILS fund with a Barbados captive, modeled after the well-known Bermuda captive approach typically used by ILS funds in the past, and has established a new precedent for future insurance funds with this unique regulatory structure.
ABOUT AUM ASSET MANAGEMENT
AUM Asset Management Ltd. is an independent investment management company that provides investment and fund solutions, asset management and advisory services to institutional investor and family office clients around the world. The firm seeks consistent growth of clients' wealth, while employing a thoughtful, ESG-centric approach to investing that has a positive impact on the environment and society. AUM incorporates sustainability as a core factor in all of its investments. AUM offers clients a range of innovative traditional, alternative and real-asset-based investment solutions. The firm's multi-faceted investment approach combines multiple strategies (hedge funds, real estate, private equity, merger arbitrage), markets, geographies and asset classes with an unrestricted mindset to offer its investors absolute returns over the long term. The firm was founded in 2015 by financier and investor Jean-François de Clermont-Tonnerre and has offices in Malta and London. To learn more about the firm, go to https://aum-am.com/.
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