First Scandinavian cat bond manager launches
The first Scandinavian-based manager of a cat bond fund will launch in 2014 subject to regulatory approval by the Swedish Financial Supervisory Authority (Finansinspektionen).
Entropics Asset Management has filed an application for a fund that would invest primarily in cat bonds.
If the fund becomes operational, Entropics will be one of just ten fund managers operating a cat bond fund compliant with the Undertakings for Collective Investment in Transferable Securities (UCITS), a European directive that allows collective investment schemes to operate freely throughout the EU.
Robert Lindblom, CEO and one of two main founders of Entropics, has had a long career in the Swedish insurance and fund industries. Before initiating Entropics, he spent 10 years with Swedish hedge fund manager Brummer & Partners. He was the first CEO of Brummer Life, the life insurance branch of Brummer & Partners.
“The main reason to start Entropics is the need for diversified investment opportunities in the Swedish market,” said Lindblom. “Still, uncertainties remain about the long term stock market. Low interest rates seem to be more or less permanent. A lot of investors are looking for new asset classes with good risk adjusted return and low correlation with traditional asset classes.”
Entropics intends to manage a fund administered by Swedbank. The planned fund will be oriented towards other funds and direct to institutional and private investors.
“We want to bring cat bonds to Swedish investors, many of whom still lack resources and expertise to invest in the cat bonds market,” explained Lindblom.
Gunnar Roos, co-founder and the chief underwriter of Entropics, is part of the seven person team behind Entropics. He has more than 20 years of experience as actuary and underwriter of reinsurance and tail risk management. Roos is a partner of insurance consulting firm fmFörsäkringsmatematik.
Roos and Lindblom are joined by Tyrel Jonsson, who has extensive experience of claims management, Stig Aggevall, partner of fmFörsäkringsmatematik, and Martin Hedberg, meteorologist and climate adviser.
“It’s a deliberate decision to take an actuarial approach for investment in creating a global insurance portfolio of cat bonds,” said Roos.
Henrik Sjöholm, head of communications, has experience in Swedish politics, as PR consultant and as head of public affairs at the Swedish Federation of Business Owners.
“I am looking forward to work with such a well merited team and the robust infrastructure provided by Swedbank,” said Lindblom.
