The Plenum CAT Bond Dynamic fund has exceeded USD 200 million in fund assets. The fund was launched in 2021 as a UCITS fund. It invests exclusively in catastrophe bonds and money market investments. The investment objective is to achieve excess returns with market-like tail risk.
Dirk Schmelzer, Head Portfolio Manager ILS/CAT Bonds and Partner at Plenum Investments AG, says: “Quality through risk selection is our investment focus and not simply reflecting the CAT bond market. That’s why we invest in granular, independent risks in the US wind segment. CAT bonds that are exposed to secondary risks and that aggregate damage over a certain period are reduced to a minimum. In this way, we achieve a high level of diversification in our fund and, despite the limited size of the investment universe, are able to select positions with high risk compensation and low correlation with each other.ʺ
David Strasser, senior portfolio manager who is responsible for modeling, adds: “In an already limited market segment selectivity can be guaranteed only by limiting the investment capacity of the fund to a maximum of USD 650 million which represents approximately 1.5% of the current market volume. This is a clear commitment to our customers.” Dirk adds: “Investors are increasingly understanding that the fund volume in the CAT bond market is a critical success factor and that the investment volume must be adjusted to that of the niche investment universe. The Plenum CAT Bond Dynamic fund is an exclusive investment fund that represents a leap in quality in the high-yielding CAT bond fund segment. It is a response to the fact that capacity with some of the existing funds in the high-yielding UCITS has reached its limit.ʺ
The fund has a highly diversifying effect in multi-asset portfolios and is suitable as an alternative investment component. The Plenum CAT Bond Dynamic fund combines the desire of many investors for stable, low correlations and an attractive return. While insurance premiums for CAT bonds are at historically high levels, the “hunt for return” has begun again and both geopolitical and trade policy risks are increasing, therefore the growth of the CAT bond market is likely to continue.
Currency-hedged share classes are available in CHF, EUR and USD. The fund is classified according to Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).
We would like to thank our investors for the trust placed in us and their commitment to support our new fund from the outset.
For further information, please contact us. We look forward to hearing from you.
Der Beitrag Press Release: Plenum CAT Bond Dynamic Fund now exceeds USD 200 Million erschien zuerst auf Plenum Investments.