Schroders has launched a second fund investing in life insurance-linked securities, as it moves to further strengthen its foothold in the sector, raising a total of $420 million (€338.3 million).
The Life Insurance Linked II fund, managed by Scott Mitchell, will invest in global life insurance-linked securities – an area said to be experiencing continued strong demand.
Claire Glennon, co-head of UK and Ireland institutional at Schroders, said: “Pension schemes are increasingly looking to increase their exposures to alternative assets and ILS [insurance-linked securities] strategies are well positioned to meet these investment objectives.”
According to Schroders, investors plan to increase allocations to private assets over the coming year, with many saying this would help manage risk.
The closed-end fund, which has a 10-year maturity, will be managed alongside several existing Life ILS funds and mandates.
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