Expert Investor SICAV-SIF - Twelve Insurance Bond Fund

Fund Objectives

The investment objective of the Twelve Insurance Bond Fund SICAV-SIF is to exploit opportunities in the market for liquid bonds issued by insurance companies. The fund takes credit risk of insurance companies for attractive spreads over risk free rates. The focus of the fund is on European insurance companies. Risks assumed by the fund are credit risks, issuers not paying coupons or the insolvency. In addition, there is mark-to-market risk as spreads of this portfolio tend to be highly correlated to credit spreads in general.

The fund contains a well diversified portfolio among issuers, geographies and credit ratings. The exposure per issuer shall not exceed 10% of the NAV and the exposure to non-investment grade securities is limited to 20% of NAV.

Watch the video about the Subordinated Insurance Bonds on the right(presented by Urs Ramseier)

Investment Strategy

The fund manager believes the upcoming regulatory changes in the European insurance industry (Solvency II) presents an opportunity to earn attractive risk adjusted returns. The market for bonds issued by European insurance companies is about €100 billion in size with approximately 80% subordinated bonds and 20% senior bonds. Therefore, the main investments of the fund are expected to be in European subordinated bonds.