Lombard Odier IM : Nomme une équipe spécialisée dans les obligations catastrophes (CAT)
Kiidline•12/08/2015 à 10:52
Lombard Odier Investment Managers (LOIM), the institutional asset management arm of Lombard Odier Group, has appointed an Insurance Linked Strategies (ILS) team to offer institutional clients a further asset class with low correlation to mainstream assets.
Gregor Gawron joins with team members Simon Vuille and Marc Brogli. Gawron led the CAT bonds and ILS offering at Dynapartners and before that at Falcon Private Bank. Prior to this, Gawron was a portfolio manager in the ILS team at RMF/Man Investments, where he worked closely with his current team.
Based in LOIM's office in Zurich, the ILS team will report to Jan Straatman, LOIM's Chief Investment Officer.
"CAT bonds are uncorrelated to other risks, including economic and capital market events, while the 4%-6%1 returns on offer remain attractive. The overall ILS universe size is close to $60bn2 and growing steadily." Straatman said. "Investors face multiple challenges that are tough to reconcile: low growth, zero interest rates and valuations getting stretched. Institutions can find themselves lured into taking more risk without getting the returns expected. We need to help clients increase returns while safeguarding capital and that means better building blocks for portfolios. CAT bonds possess those qualities."
Gawron's team uses a proprietary approach aimed at optimising portfolios of insurance linked securities and targeting maximum diversification across different risk types, and different regions.
"We are excited to bring our ILS offering to LOIM, whose values we share and where we can leverage the firm's sophisticated infrastructure to benefit investors," said Gregor Gawron.
The ILS/CAT Bond boutique expands LOIM's high conviction fixed income range. "In the next couple of years, fixed income will be more volatile and subject to rising rates", adds Jan Straatman. "It will be crucial to add active and high conviction strategies which protect clients better against rising rates, instead of the traditional market cap based strategies. CAT bonds can meet these criteria with a higher starting yield and floating rate coupon."
LOIM's Geneva-headquartered business managed $49 billion on behalf of clients at the end of December 2014. LOIM's managers seek to deliver performance by identifying sources of risk and return through absolute return, smart beta and high conviction strategies. LOIM offers a range of solutions including risk-based asset allocation, thematic equity investments, convertible bonds, absolute return as well as single-manager hedge funds.
Tel.: +41 (22) 709 93 64
Past or estimated performance is not necessarily indicative of future results and no assurance can be made that profits will be achieved or that substantial losses will not be incurred. This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This document contains the opinions of LOIM, as at the date of issue.
Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
Issued by Lombard Odier Asset Management (Switzerland) SA authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
© 2015 Lombard Odier Investment Managers - all rights reserved.
1. www.Artemis.bm Deal Directory.
2 Source: AON Benfield - Reinsurance Market Outlook, January 2015