Schroders Capital surpasses $5 billion ILS AUM milestone

14 March 2024

Schroders Capital has continued its robust growth and is now managing over $5 billion for insurance-linked securities (ILS) from its range of vehicles on behalf of clients.

The firm, which is active across the full spectrum of ILS instrument types and risk exposures, is now one of the largest managers of catastrophe bonds. With its UCITS fund Schroder GAIA Cat Bond, Luxembourg FCP Schroder IF Flexible Cat Bond fund and a recently launched fund vehicle offering access to US investors, the team’s offering reaches many investor types across the world.

The ILS team includes 37 highly-specialised investment professionals and has a track record of almost 15 years in delivering strong, consistent and top peer group performances.

In October last year, Schroders Capital announced the launch of its Private Debt and Credit Alternatives (PDCA) business which comprises global credit and debt expertise in alternatives and private markets, including ILS. PDCA manages over $30 billion in assets.

With the growth of the ILS business, Schroders Capital announces the promotion of Daniel Ineichen and Flavio Matter as Co-Heads of ILS. They continue to report into Stephan Ruoff, Co-Head of PDCA who has also been appointed as Chair of ILS and continues to oversee the team.

Stephan Ruoff, Co-Head of PDCA and Chair of ILS, commented:

“With investor concerns over inflation and having to navigate higher for longer rates, portfolio diversification is key. Investors are clearly seeing the benefits of adding less-correlated assets such as ILS in a portfolio context.

“Fundamental indicators suggest a continuation of attractive conditions for ILS investors. Yields as well as underlying risk premiums remain very attractive as demand for insurance risk transfer remains high.

“We are extremely pleased to have reached this milestone which is testament to the team and our track record. Congratulations to Daniel and Flavio who have been key in driving the success of our business.”

Source: Schroders