UK-listed Schroders has launched the Schroder GAIA (Global Alternative Investor Access) Cat Bond Fund on its UCITS platform. 

GAIA is a regulated, transparently operated platform for UCITS funds designed to give investors easier access to hedge funds, the firm said in a statement.

The new fund invests globally in catastrophe (cat) bonds (minimum 80 per cent) - mainly linked to natural catastrophes such as hurricanes and earthquakes and to a lesser extent in other risks such as "man-made" risks (aviation, marine, offshore energy) - and other tradable insurance-linked securities (ILS).  The fund’s exposure will be primarily in regions with a high concentration of insured wealth such as the United States, Western Europe and Japan.

The fund will be managed by Daniel Ineichen, who has been manager of the NGAR Secquaero ILS Fund since its inception in May 2011. Ineichen has served as an ILS portfolio manager since joining Secquaero Advisors in December 2007 and transferred to the Schroders ILS team in June 2013. 

The primary objective of Schroder GAIA Cat Bond is to generate a positive performance over the medium to long-term through investing in a diversified portfolio of tradable insurance-linked instruments with a focus on cat bonds. The fund’s outperformance target is three month US dollar Libor + 6 per cent per annum net of fees, and it seeks to generate total returns with a low correlation to traditional assets, the firm said.

Earlier in the month Schroders launched its SIF- Core Insurance Linked Securities, which also invests in catastrophe bonds, as well as other insurance-linked securities instruments.